Section 378N — Provisions in respect of officers and other employees of inter-State co-operative society

(1) Notwithstanding anything contained in section 378 -O, all the directors in the inter-State co-operative
society before the incorporation of the Producer Company shall continue in office for a period of one year
from the date of transformation and in accordance with the provisions of this Act.
(2) Every officer or other employee of the inter -State co-operative society (except a director of the
Board, Chairman or Managing Director) serving in its employment immediately before the date of
transformation shall, in so far as such officer or other employee is employed in connection with the inter-
State co-operative society which has vested in the Producer Company by virtue of this Act, become, as
from the date of transformation, an officer or, as the case may be, other employee of the Producer Company
and shall hold his office or service therein by the same tenure, at the same remuneration, upon the same
terms and conditions, with the same obligations and with the same rights and privileges as to leave, leave
travel concession, welfare scheme, medical benefit scheme, insurance, provident fund, other funds,
retirement, voluntary retirement, gratuity and other benefits as he would have held under the erstwhile inter-

State co-operative society if its undertaking had not vested in the Producer Company and shall continue to
do so as an officer or, as the case may be, other employee of the Producer Company.
(3) Where an officer or other employee of the inter -State co-operative society opts under sub-section
(2) not to be in employment or service of the Producer Company, such officer or other employee shall be
deemed to have resigned.
(4) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any
other law for the time being in force, the transfer of the services of any officer or other employee of the
inter-State co-operative society to the Producer Company shall not entitle such officer or other employee
to any compensation under this Act o r under any other law for the time being in force and no such claim
shall be entertained by any court, tribunal or other authority.
(5) The officers and other employees who have retired before the date of transformation from the
service of the inter-State co-operative society and are entitled to any benefits, rights or privileges, shall be
entitled to receive the same benefits, rights or privileges from the Producer Company.
(6) The trusts of the provident fund or the gratuity fund of the inter-State co-operative society and any
other bodies created for the welfare of officers or employees shall continue to discharge functions in the
Producer Company as was being done hitherto in the inter-State co-operative society and any tax exemption
granted to the provident fund or the gratuity fund would continue to be applied to the Producer Company.
(7) Notwithstanding anything contained in this Act or in any other law for the time being in force or in
the regulations of the inter -State co -operative society, no director of the Board, Chairman, Managing
Director or any other person entitled to manage the whole or substantial part of the business and affairs of
the inter-State co-operative society shall be entitled to any compensation against the inter-State co-operative
society or the Producer Company for the loss of office or for the premature termination of any contract of
management entered into by him with the inter-State co-operative society.
PART III
MANAGEMENT OF PRODUCER COMPANY
378-O. Number of directors.—Every Producer Company shall have at least five and not more than
fifteen directors: