Question
What can be the modes of disbursement for the withheld
price of the produce supplied by a Member of a producer Company as per the Companies Act?Solution
Cash or kind or equity shares, as determined by the Board, Explanation: Section 378E - Benefits to Members: (1) Subject to the provisions made in articles, every Member shall initially receive only such value for the produce or products pooled and supplied as the Board of Producer Company may determine, and the withheld price may be disbursed later in cash or in kind or by allotment of equity shares, in proportion to the produce supplied to the Producer Company during the financial year to such extent and in such manner and subject to such conditions as may be decided by the Board.Â
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