Scribd
Upload
27 views5 pages

MBA 3.5-4th-BUSA4140-17

A member of a company is someone who holds shares or whose name is registered on the company's register of members. Members can become so by subscribing to the memorandum, being allotted shares, transferring shares, or having shares transmitted upon death. Membership terminates through actions like transferring shares, forfeiture, surrendering shares, or upon insolvency, redemption of shares, or winding up of the company.

Uploaded by

Salman Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
27 views5 pages

MBA 3.5-4th-BUSA4140-17

A member of a company is someone who holds shares or whose name is registered on the company's register of members. Members can become so by subscribing to the memorandum, being allotted shares, transferring shares, or having shares transmitted upon death. Membership terminates through actions like transferring shares, forfeiture, surrendering shares, or upon insolvency, redemption of shares, or winding up of the company.

Uploaded by

Salman Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Members of company

Members of company

Meaning and definitions:


A person who holds shares in a company having a share
capital is called shareholder and he become a
member when his name is entered on the register of
members.
Section. 118: The subscribers to the memorandum of
association are deemed to have agreed to become
members of the company, become members on its
registration.
Members of company

Mode of becoming member


A person may become member of a company in the following ways:
Subscriber to memorandum
A person who signs the memorandum is called subscriber
to the memorandum. A subscriber to the memorandum
becomes a member of the company on its registration.
Company having share capital
A person to whom shares are allotted becomes a member
of the company when his name is entered in the
register of members.
Members of company

Company not having share capital


In the case of a company not having share capital, a person
becomes a member when he agrees to become member of
the company and his name is entered on the register of
members.
Transfer
A person who takes shares from shareholder by sale of gift
becomes a member when his name is entered in the
register of members.
Transmission
on death, shares transferred to his legal representative and
they become members.
Members of company

Termination of membership
1. Transfer his shares
2. Shares forfeited by the company
3. Surrender of shares
4. Court decide to sold his shares
5. On death
6. He declared insolvent
7. Rejection of subscription
8. Redeemable preference share are redeemed
9. Company purchase its own shares
10. Wounding up of the company

You might also like