The Ministry of Corporate Affairs has decided to impose certain conditions for conversion of ordinary Society into Producer Company, Part-IX A of the Companies Act,1956.
In a Circular issued by the Ministry recently it has been stated that on receipt of an application/form seeking conversion of a Cooperative Society (Society not registered as the Multi State Society) into a Producer Company, the Registrar of Companies (ROCs) will seek a written consent from the local Cooperative Department of the concerned State certifying that the Society desirous of being converted into a Producer Company under the Companies Act, 1956. Further, the ROCs must satisfy themselves fully that the applicant society has indeed extended its activities outside the State where it is registered as a Cooperative Society under the local/State Level law governing Cooperative Societies which are not inter-State Cooperative Societies.
In case of any doubt a reference may be made to the Ministry for further guidance before incorporation under Section 581 J(5). This circular is effective from Sep 10, 2012.