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However, the section that defines the various types of companies that can be incorporated under the Act remains unaltered.
The new concept of producer companies is based on the recommendations of an expert committee led by noted economist, Y. K. Alagh. The committee was asked (a) to frame a legislation that would enable incorporation of cooperatives as companies and conversion of existing cooperatives into companies and (b) to ensure that the proposed legislation accommodated the unique elements of cooperative business with a regulatory framework similar to that of companies.
The new type is termed as `producer company', to indicate that only certain categories of persons can participate in the ownership of such companies...
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