Overview
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Benefits
Aspect | Merits | Demerits |
Objective | Helps primary producers to improve their income and living standards | Limited to only primary producers |
Liability | Limited liability for members | No separate legal entity, members are jointly and severally liable |
Membership | Open to anyone engaged in production activities | Members cannot transfer shares to non-members |
Management | Board of directors must consist only of primary producer members | Limited ability to attract professional managers |
Capital | Allowed from members and other sources | Limited ability to raise capital from the general public |
Taxation | Eligible for certain tax benefits | Taxed as per the regular corporate tax rates |
Compliance | Exempted from certain provisions of the Companies Act | Required to comply with specific regulations for Producer Companies |
Note: The above table lists some of the major aspects of a Producer Company and their corresponding merits and demerits. However, the actual benefits and drawbacks may vary depending on the specific circumstances and needs of each Producer Company.