Producer Companies are governed under Chapter XXI-A (Sections 378A-378ZU) inserted into the Companies Act 2013 by the Companies (Amendment) Act 2020. A producer company is:

1. Chapter XXI-A Companies Act 2013 (Sections 378A-378ZU), inserted by the Companies (Amendment) Act, 2020 with effect from 11-Feb-2021, governs PRODUCER COMPANIES (a regime first introduced via the Companies Act 1956 amendment of 2002). 2. Section 378B defines OBJECTS: production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members, or import of goods or services for their benefit; processing including preserving, drying, distilling, brewing, vinting, canning and packaging; manufacture, sale or supply of machinery, equipment or consumables to its Members; education on the mutual assistance principles; technical/consultancy services; etc. 3. Members must be PRIMARY PRODUCERS (engaged in primary production — agriculture, animal husbandry, horticulture, floriculture, etc.). 4. Distinct features: minimum 10 PRODUCER members, or 2 PRODUCER INSTITUTIONS; minimum 5 directors; profits applied for purposes of the company / patronage bonus. 5. Hence option B is correct. _Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Chapter XXI-A (Sections 378A-378ZU); inserted by Companies (Amendment) Act 2020_