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The Companies Act, 1956

Producer Companies (581A - 581ZT)

Section 581ZK- Loan, etc., to Members.

Section 581ZK- Loan, etc., to Members.

The Board may, subject to the provisions made in articles, provide financial assistance to the Members of the Producer Company by way of —

(a) credit facility, to any Member, in connection with the business of the Producer Company, for a period not exceeding six months;

(b) loans and advances, against security specified in articles to any Member, repayable within a period exceeding three months but not exceeding seven years from the date of disbursement of such loan or advances:

Provided that any loan or advance to any director or his relative shall be granted only after the approval by the Members in general meeting.