LECTURE NO. 7
Membership of Company
, OBJECTIVES OF LECTURE NO. 7
This lecture is divided into three Parts.
At the end of this lecture the students will be
able to answer the following questions:
Who is share holder?
How a person become a share holder and
what are his rights.
, Lecture no. 7 Part “A”
How to become a member of a company?
A share holder is also called as a member or real owner of a
company. A person to become a share holder must have registere
least one against his name and his name must be written in the
members register.
A person may become a shareholder or a member of a compa
any one of the following ways:
1. By Subscription
2. By Application
3. By Transfer
4. By Succession
5. By Acquiescence/Estoppel
, Lecture no. 7 Part “A”
How to become a member of a company?
1. Membership by Subscription
All persons who subscribe their names to the memorand
association are deemed to be members of the company o
reason that they have signed the memorandum of assoc
Their name are entered on the register of members aft
company is incorporated but neither allotment nor registrat
their names is necessary to make them members of the com
However, they must take the shares direct from the compan
pay calls duly made on them like any other shareholder.
A subscriber cannot transfer his shares to another subscribe
nature of a contract to be a member by subscription, by a
who signs the memorandum, is such that it cannot be res
on the grounds of misrepresentation.
Membership of Company
, OBJECTIVES OF LECTURE NO. 7
This lecture is divided into three Parts.
At the end of this lecture the students will be
able to answer the following questions:
Who is share holder?
How a person become a share holder and
what are his rights.
, Lecture no. 7 Part “A”
How to become a member of a company?
A share holder is also called as a member or real owner of a
company. A person to become a share holder must have registere
least one against his name and his name must be written in the
members register.
A person may become a shareholder or a member of a compa
any one of the following ways:
1. By Subscription
2. By Application
3. By Transfer
4. By Succession
5. By Acquiescence/Estoppel
, Lecture no. 7 Part “A”
How to become a member of a company?
1. Membership by Subscription
All persons who subscribe their names to the memorand
association are deemed to be members of the company o
reason that they have signed the memorandum of assoc
Their name are entered on the register of members aft
company is incorporated but neither allotment nor registrat
their names is necessary to make them members of the com
However, they must take the shares direct from the compan
pay calls duly made on them like any other shareholder.
A subscriber cannot transfer his shares to another subscribe
nature of a contract to be a member by subscription, by a
who signs the memorandum, is such that it cannot be res
on the grounds of misrepresentation.
