Amended and updated notes on section 378W of the Companies Act 2013 as amended by the Companies (Amendment) Act, 2020 and Company Rules made there under. Detail discussion on provisions and rules related to Chief Executive and his functions.
Chapter XXIA PART-III (Sections 378O to 378Z) of the Companies Act 2013 (CA 2013) deals with the provisions related to management of producer company. Section 378W of CA 2013 provides for Chief Executive and his functions.
Recently, we have discussed in detail section 378V (Meetings of Board and quorum) of CA 2013. Today, we learn the provisions of section 378W of the Companies Act 2013.
In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government appoints the 11th February, 2021 as the date on which the provisions of section 52 of the Companies (Amendment) Act, 2020 shall come into force.
Accordingly, the provisions of section 378W are effective from 11th February, 2021. You may refer Notification No. S.O. 644(E) dated 11-02-2021. In this article, you will learn detail of the provisions of section 378W the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXIA (PART-III) |
| Chapter Name | Management of Producer Company |
| Section No. | 378W |
| Section Name | Chief Executive and his functions |
| Monthly Updated Edition | Company Law PDF |
Section 378W: Chief Executive and his functions
Section 378W(1) of Companies Act
Every Producer Company shall have a full time Chief Executive, by whatever name called, to be appointed by the Board from amongst persons other than Members.
Section 378W(2) of Companies Act
The Chief Executive shall be ex officio director of the Board and such director shall not retire by rotation.
Section 378W(3) of Companies Act
Save as otherwise provided in articles, the qualifications, experience and the terms and conditions of service of the Chief Executive shall be such as may be determined by the Board.
Section 378W(4) of Companies Act
The Chief Executive shall be entrusted with substantial powers of management as the Board may determine.
Section 378W(5) of Companies Act
Without prejudice to the generality of sub-section (4), the Chief Executive may exercise the powers and discharge the functions, namely:—
- (a) do administrative acts of a routine nature including managing the day-to-day affairs of the Producer Company;
- (b) operate bank accounts or authorise any person, subject to the general or special approval of the Board in this behalf, to operate the bank account;
- (c) make arrangements for safe custody of cash and other assets of the Producer Company;
- (d) sign such documents as may be authorised by the Board, for and on behalf of the company;
- (e) maintain proper books of account; prepare annual accounts and audit thereof; place the audited accounts before the Board and in the annual general meeting of the Members;
- (f) furnish Members with periodic information to apprise them of the operation and functions of the Producer Company;
- (g) make appointments to posts in accordance with the powers delegated to him by the Board;
- (h) assist the Board in the formulation of goals, objectives, strategies, plans and policies;
- (i) advise the Board with respect to legal and regulatory matters concerning the proposed and ongoing activities and take necessary action in respect thereof;
- (j) exercise the powers as may be necessary in the ordinary course of business;
- (k) discharge such other functions, and exercise such other powers, as may be delegated by the Board.
Section 378W(6) of Companies Act
The Chief Executive shall manage the affairs of the Producer Company under the general superintendence, direction and control of the Board and be accountable for the performance of the Producer Company