Section 378D — Membership and voting rights of Members of Producer Company

(1)(a) In a case where
the membership consists solely of individual Members, the voting rights shall be based on a single vote for
every Member, irrespective of his shareholding or patronage of the Producer Company.
(b) In a case where the membership consists of Producer Institutions only, the voting rights of such
Producer Institutions shall be determined on the basis of their participation in the business of the Producer
Company in the previous year, as may be specified by articles:
Provided that during the first year of registration of a Producer Company, the voting rights shall be
determined on the basis of the shareholding by such Producer Institutions.
(c) In a case where the membership consists of individuals and Producer Institutions, the voting rights
shall be computed on the basis of a single vote for every Member.
(2) The articles of any Producer Company may provide for the conditions, subject to which a Member
may continue to retain his membership, and the manner in which voting rights shall be exercised by the
Members.
(3) Notwithstanding anything contained in sub -section (1) or sub-section (2), any Producer Company
may, if so authorised by its articles, restrict the voting rights to active Members, in any special or general
meeting.
(4) No person, who has any business interest which is in conflict with business of the Producer
Company, shall become a Member of that Company.
(5) A Member, who acquires any business interest which is in conflict with the business of the Producer