The Central in exercise of the powers conferred by the Companies Act, 2013, and in supersession of the Producer Companies (General Reserve) Rules, 2003, makes Producer Companies Rules, 2021.
The Rules provides that the rules 27, 30 and 31 of the Companies (Incorporation) Rules, 2014, including the forms stated therein shall be applied for the purpose of change of place of registered office of a Producer Company from one State to another.
It further provides for Investment of general reserves i.e. a Producer Company must make investments from and out of its general reserves in any one or in combination of the following:
- in approved securities, fixed deposits, units and bonds issued by the Central Government or State Governments or co-operative societies or scheduled bank; or
- in a co-operative bank, State co-operative bank, co-operative land development bank or Central co-operative bank; or
- with any other scheduled bank; or
- in any of the securities specified in section 20 of the Indian Trusts Act, 1882; or
- in the shares or securities of any other inter-State co-operative society or any co-operative society; or
- in the shares, securities or assets of public financial institutions.