Section 378A — Definitions

In this Chapter, unless the context otherwise requires,—
(a) “active Member” means a Member who fulfils the quantum and period of patronage of the
Producer Company as may be required by the articles;
(b) “Chief Executive” means an individual appointed as such under sub-section ( 1) of section
378W;
(c) “inter-State co-operative society” means a multi-State co-operative society as defined in clause
(p) of section 3 of the Multi-State Co-operative Societies Act, 2002 (39 of 2002) and includes any co-

1. Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021).

operative society registered under any other law for the time being in force, which has, subsequent to
its formation, extended any of its objects to more than one State by enlisting the participation of persons
or by extending any of its activities outside the State, whether directly or indirectly or through an
institution of which it is a constituent;
(d) “limited return” means the maximum dividend as may be specified by the articles;
(e) “Member” means a person or Producer Institution (whether incorporated or not) admitted as a
Member of a Producer Company and who retains the qualifications necessary for continuance as such;
(f) “mutual assistance principles” means the principles set out in sub-section (2) of section 378G;
(g) “officer” includes any director or Chief Executive or Secretary or any person in accordance
with whose directions or instructions part or whole of the business of the Producer Company is carried
on;
(h) “patronage” means the use of ser vices offered by the Producer Company to its Members by
participation in its business activities;
(i) “patronage bonus” means payments made by a Producer Company out of its surplus income to
the Members in proportion to their respective patronage;
(j) “primary produce” means —
(i) produce of farmers, arising from agriculture (including animal husbandry, horticulture,
floriculture, pisciculture, viticulture, forestry, forest products, re-vegetation, bee raising and farming
plantation products), or from any other primary activity or service which promotes the interest of the
farmers or consumers; or
(ii) produce of persons engaged in handloom, handicraft and other cottage industries; or
(iii) any product resulting from any of the above activities, including by-products of such products;
or
(iv) any product resulting from an ancillary activity that may assist or promote any of the aforesaid
activities or anything ancillary thereto; or
(v) any activity which is intended to increase the production of anything referred to in sub-clauses
(i) to (iv) or improve the quality thereof;
(k) “producer” means any person engaged in any activity connected with or relatable to any primary
produce;
(l) “Producer Company” means a body corporate having objects or activities specified in section
378B and registered as Producer Company under this Act or under the Companies Act, 1956
(1 of 1956);
(m) “Producer Institution ” means a Producer Company or any other institution having only
producer or producers or Producer Company or Produ cer Companies as its member whether
incorporated or not having any of the objects referred to in section 378B and which agrees to make use
of the services of the Producer Company or Producer Companies as provided in its articles;
(n) “withheld price” means part of the price due and payable for goods supplied by any Member to
the Producer Company; and as withheld by the Producer Company for payment on a subsequent date.



PART II
INCORPORATION OF PRODUCER COMPANIES AND OTHER MATTERS