Section 581ZD(5) in The Companies (Amendment) Act, 2002
(5)Where the Board of a Producer Company is satisfied that-(a)any Member has ceased to be a primary producer; or(b)any Member has failed to retain his qualifications to be a Member as specified in articles, the Board shall direct the surrender of shares together with special rights, if any, to the Producer Company at par value or such other value as may be determined by the Board:Provided that the Board shall not direct such surrender of shares unless the Member has been served with a written notice and given an opportunity of being heard.CHAPTER VI FINANCE, ACCOUNTS AND AUDIT
