Unit 2: Members & Shareholders
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Members
Amemberof a company is anyperson who is legallytreated as a partof a
section2155 it includes
company According to
Essentials
ofMembership Subscribers tothememorandum MOA
agreementinwritingorimplied
in
nameentered Register Members
personwhohas agreed in writing
of
Beneficial owners in depository records
Waysto acquire membership
competency tocontract suisuris Membership in a company can be acquired in thefollowing ways
major above18 1 Subscriberstothe Memorandum
notdisqualifiedbylaw
notofunsoundmind
anypersonwhohassigned the MOAof a company duringitsformation
automatically treated as member ofcompany on registration
doesnotrequire application or allotment
mustreceiveshares directlyfromthe company nototherpeople
mustpay
fortheshares in cashevenwhen promisedsharesbythepromoters or
foundersforservices rendered in connection withpromotionofthecompany
2 Agreement in writing
imn.iteriienalitimmen't allotment
ofshares when a person appliesforshares in a company and is
p allottedshares thecompany heisalsogiven an allotmentnotice and their na
by
Eid tn ntaitioiltainghm t isenteredin theregisterofmembers
if
notpersonwontbecome a member
transferofshares shares are considered as transferable or movable property
persection 56ofcompaniesAct 2013 andcanbetransferredfromoneperson to
anotheras
pertheAOAofthecompany Ontransfer a transfer instrument is signed
and thenew personsname is entered in the register
waytoacquiremembership who can become members
Members typesofmembers
liabilities
ofmembers rightsofmembers
of
cessation membership
Eli.ieoner
, transmission
ofshares a person mayalso become the memberof a company
It is a legal consequence and n
ifthey are thelegalheir to a deceased member
a voluntary action
acquiescence or estoppel if a person is aware thattheirname isenteredwrongly in
theregisterofmembers butthey donotobject it it they are considered to bedeeme
members
of a company if thepersonacts as a member andenjoys allrights benefits
ofa memberthen even iftheirname is not mention in aformalisedwaythey aresti
consideredmembers latercannot claimotherwise
3 BeneficialO wner
in Depository Records
Anypersonwhohas been holdingthesharesof a company through a depositoryonline
andisrecorded in thedepository's records is alsoconsidered as a beneficial member
Whocan acquire Membership
yes prescribedinMOA cannot a member ofowncompany
Companies become
LLP's yes CCPAct2 008
Partnerships no not
s eparatelegal
entity exceptsection
section companies
yes byMOA
authorised
Minors no suijuris voidabinitio
insolvents yes nobenefits officialAssignee canvote
Foreigners yes FEMA1999 notd uringwar notice votingrightssuspended
Unsoundmind eyes voting
byrepresentative
TypesofMembers
OriginalMembers firstmembers signedMOA
OrdinaryMembers throughshareapplication allotment
pie i
siscic.is
Members
Amemberof a company is anyperson who is legallytreated as a partof a
section2155 it includes
company According to
Essentials
ofMembership Subscribers tothememorandum MOA
agreementinwritingorimplied
in
nameentered Register Members
personwhohas agreed in writing
of
Beneficial owners in depository records
Waysto acquire membership
competency tocontract suisuris Membership in a company can be acquired in thefollowing ways
major above18 1 Subscriberstothe Memorandum
notdisqualifiedbylaw
notofunsoundmind
anypersonwhohassigned the MOAof a company duringitsformation
automatically treated as member ofcompany on registration
doesnotrequire application or allotment
mustreceiveshares directlyfromthe company nototherpeople
mustpay
fortheshares in cashevenwhen promisedsharesbythepromoters or
foundersforservices rendered in connection withpromotionofthecompany
2 Agreement in writing
imn.iteriienalitimmen't allotment
ofshares when a person appliesforshares in a company and is
p allottedshares thecompany heisalsogiven an allotmentnotice and their na
by
Eid tn ntaitioiltainghm t isenteredin theregisterofmembers
if
notpersonwontbecome a member
transferofshares shares are considered as transferable or movable property
persection 56ofcompaniesAct 2013 andcanbetransferredfromoneperson to
anotheras
pertheAOAofthecompany Ontransfer a transfer instrument is signed
and thenew personsname is entered in the register
waytoacquiremembership who can become members
Members typesofmembers
liabilities
ofmembers rightsofmembers
of
cessation membership
Eli.ieoner
, transmission
ofshares a person mayalso become the memberof a company
It is a legal consequence and n
ifthey are thelegalheir to a deceased member
a voluntary action
acquiescence or estoppel if a person is aware thattheirname isenteredwrongly in
theregisterofmembers butthey donotobject it it they are considered to bedeeme
members
of a company if thepersonacts as a member andenjoys allrights benefits
ofa memberthen even iftheirname is not mention in aformalisedwaythey aresti
consideredmembers latercannot claimotherwise
3 BeneficialO wner
in Depository Records
Anypersonwhohas been holdingthesharesof a company through a depositoryonline
andisrecorded in thedepository's records is alsoconsidered as a beneficial member
Whocan acquire Membership
yes prescribedinMOA cannot a member ofowncompany
Companies become
LLP's yes CCPAct2 008
Partnerships no not
s eparatelegal
entity exceptsection
section companies
yes byMOA
authorised
Minors no suijuris voidabinitio
insolvents yes nobenefits officialAssignee canvote
Foreigners yes FEMA1999 notd uringwar notice votingrightssuspended
Unsoundmind eyes voting
byrepresentative
TypesofMembers
OriginalMembers firstmembers signedMOA
OrdinaryMembers throughshareapplication allotment
