Akilesh, as a member of a Producer Company, wants to understand his rights and voting power. Advise.

In terms of Section 581D of Companies Act, 1956, where the membership of the Producer Company consists solely of Producer Institutions, the voting rights of such Producer Institutions shall be determined on the basis of their previous year's participation in the business of the company. During the first year of its regulation, the voting rights shall be determined on the basis of the shareholding by Producer Institutions. Where individual members are also admitted, every member shall have a single vote irrespective of the number of shares held by them or their patronage of the Producer Company. The Articles of Association can restrict the voting rights to active members only. No person, who has any business interest which conflicts with the business of Producer Company, shall become a member of that Producer Company and if subsequently, a member acquires any business interest which is in conflict, he shall cease to be a member and be removed as a member in accordance with the articles.