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Gomti Cooperative Producers Society, registered in two States, wants to become a Producer Company. A company secretary reviews the draft application. Which proposal is consistent with section 378J?

An inter-State co-operative society must file a special resolution of not less than two-thirds of its total members, with a statement of directors and members, a statement of objects, and a declaration by two or more directors. Board resolutions, simple majorities or single-director declarations are insufficient.

  1. APass a special resolution by not less than two-thirds of total members, and file it with a member list and a declaration by two or more directorsCorrect
  2. BPass an ordinary resolution of the board and file it with the Registrar
  3. CPass a special resolution by a simple majority of members present and file it
  4. DObtain a declaration from one director alone and file it with the member list

Explanation

Section 378J(2) requires a copy of a special resolution of not less than two-thirds of total members, a statement of directors and a member list, a statement of objects under section 378B, and a declaration by two or more directors. The board resolution, a simple majority and a single-director declaration all fall short of these requirements.

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