Amended and updated notes on section 378ZI 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 General and other reserves.
Chapter XXIA PART-VI (Section 378ZE to 378ZJ) of the Companies Act 2013 (CA 2013) deals with the provisions related to finance, accounts and audits. Section 378ZI of CA 2013 provides for General and other reserves.
Recently, we have discussed in detail section 378ZH (Donation or subscription by Producer Company) of CA 2013. Today, we learn the provisions of section 378ZI 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 378ZI 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 378ZI 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-VI) |
| Chapter Name | Finance, Accounts and Audits |
| Section No. | 378ZI |
| Section Name | General and other reserves |
| Monthly Updated Edition | Company Law PDF |
Section 378ZI: General and other reserves
Section 378ZI(1) of Companies Act
Every Producer Company shall maintain a general reserve in every financial year, in addition to any reserve maintained by it as may be specified in articles.
Section 378ZI(2) of Companies Act
In a case where the Producer Company does not have sufficient funds in any financial year for transfer to maintain the reserves as may be specified in articles, the contribution to the reserve shall be shared amongst the Members in proportion to their patronage in the business of that Company in that year.