Section 581G(2) in The Companies (Amendment) Act, 2002
(2)The articles shall contain the following mutual assistance principles, namely:-(a)the membership shall be voluntary and available, to all eligible persons who, can participate or avail of the facilities or services of the Producer Company, and are willing to accept the duties of membership;(b)each Member shall, save as otherwise provided in this Part, have only a single vote irrespective of the share holding;(c)the Producer Company shall be administered by a Board consisting of persons elected or appointed as directors in the manner consistent with the provisions of this Part and the Board shall be accountable to the Members;(d)save as provided in this Part, there shall be limited return on share capital;(e)the surplus arising out of the operations of the Producer Company shall be distributed in an equitable manner by-(i) providing for the development of the business of the Producer Company;(ii)providing for common facilities; and(iii)distributing amongst the Members, as may be admissible in proportion to their respective participation in the business;(f)provision shall be made for the education of Members, employees and others, on the principles of mutuality and techniques of mutual assistance;(g)the Producer Company shall actively co- operate with other Producer Companies (and other organisations following similar principles) at local, national or international level so as to best serve the interest of their Members and the communities it pur orts to serve.
