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Saturday, Jul 06, 2002

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Producer company clause approved

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THE Union Cabinet today gave its nod to move official amendments to the Companies (Second Amendment) Bill, 2001 pending in the Lok Sabha, which enables formation of "producer companies''.

Commenting on the official amendments proposed in the Bill, the Minister for Information & Broadcasting, Ms Sushma Swaraj, said that in Section 581 ZL (1) it may also be provided that the investment of general reserves of a producer company can be made in any manner, as may be prescribed by the Government, in addition to the approved securities, Government units, bonds etc as mentioned in this Section to enable higher returns to its members.

The other amendment proposed is in Section 581O — a proviso is to be added that the existing directors in the inter-State co-operative society, in excess of 15, may continue in office for a period of one year from the date of transformation of the inter-stated co-operative society into producer company to remove any anomaly that may arise by virtue of Section 581N(1).

"The official amendments proposed will be moved in the Lok Sabha in the next session of Parliament," she said.

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