A Company is composed of members,though it has its own entity distinct from members.The Members of a company are the persons who,for the time being,constitute the company, as a corporate entity.
According to section 41 of the Companies Act,1956 defines who are the members as follows:
(1) The Subscribers of the memorandum of a company shall be deemed to have agreed to become members of the Company, and on registration, shall be entered as members in its register of members;
(2) Every other person who agrees in writing to become a member of a company and whose name is entered in its register of members shall, be a member of the company;
(3) Every person holding equity share capital of a company and whose name is entered as beneficial owner in the records of a depository shall be deemed to be a member of the concerned company
In Case of a company limited by shares, the shareholders are the members.Generally speaking, every shareholder is a member and every member is a shareholder.But there is an exception to this statement,a person may be a holder of shares by transfer but would not become its member until the transfer is registered in the books of the company in his favour and his name is entered in the register of members.
Who can become a Member?
In Addition to an Individual, the following may also become a Member of the company
(i) A Company -it must have powers in MOA & AOA to make investments in other Body Corporates
(ii) A registered Co-operative Society
(iii) A Non-resident Indian- No shares can be issued or transferred to him without the General or Special Approval of Reserve Bank of India and he cannot be admitted as Member of the Indian company without the General or Special Permission of the Reserve Bank of India.
(iv) Minor-Minor is incapable to enter into the contract for being a Member but the Guardian of the Minor could apply for the issue of shares on behalf of the Minor and the company can allot shares to the guardian.When the minor attains the age of majority,he becomes entitled for the dividend and other benefits of the shareholder.
(v) HUF : Hindu Undivided Family is represented by its Karta.In case of HUF,the shares can be allotted to the name of the Karta in HUF.
(vi) Registered Trade Unions
(vii) Joint Shareholders
Who cannot become a Member?
1.Partnership Firm
2.Legal Representative
3.Pawnee
4.Public Office
5.Membership by a Subsidiary Company to its Holding Company
CESSATION OF MEMBERSHIP:
A person may cease to be a member on the following grounds:
(i) on surrender of shares
(ii) on transfer of shares
(iii) on Buyback of shares
(iv) on death of member
(v) By rescission of contract of Membership on grounds of misrepresentation or mistake.
(vi) on forfeiture of shares
(vii) on bankrupcty of member/
According to section 41 of the Companies Act,1956 defines who are the members as follows:
(1) The Subscribers of the memorandum of a company shall be deemed to have agreed to become members of the Company, and on registration, shall be entered as members in its register of members;
(2) Every other person who agrees in writing to become a member of a company and whose name is entered in its register of members shall, be a member of the company;
(3) Every person holding equity share capital of a company and whose name is entered as beneficial owner in the records of a depository shall be deemed to be a member of the concerned company
In Case of a company limited by shares, the shareholders are the members.Generally speaking, every shareholder is a member and every member is a shareholder.But there is an exception to this statement,a person may be a holder of shares by transfer but would not become its member until the transfer is registered in the books of the company in his favour and his name is entered in the register of members.
Who can become a Member?
In Addition to an Individual, the following may also become a Member of the company
(i) A Company -it must have powers in MOA & AOA to make investments in other Body Corporates
(ii) A registered Co-operative Society
(iii) A Non-resident Indian- No shares can be issued or transferred to him without the General or Special Approval of Reserve Bank of India and he cannot be admitted as Member of the Indian company without the General or Special Permission of the Reserve Bank of India.
(iv) Minor-Minor is incapable to enter into the contract for being a Member but the Guardian of the Minor could apply for the issue of shares on behalf of the Minor and the company can allot shares to the guardian.When the minor attains the age of majority,he becomes entitled for the dividend and other benefits of the shareholder.
(v) HUF : Hindu Undivided Family is represented by its Karta.In case of HUF,the shares can be allotted to the name of the Karta in HUF.
(vi) Registered Trade Unions
(vii) Joint Shareholders
Who cannot become a Member?
1.Partnership Firm
2.Legal Representative
3.Pawnee
4.Public Office
5.Membership by a Subsidiary Company to its Holding Company
CESSATION OF MEMBERSHIP:
A person may cease to be a member on the following grounds:
(i) on surrender of shares
(ii) on transfer of shares
(iii) on Buyback of shares
(iv) on death of member
(v) By rescission of contract of Membership on grounds of misrepresentation or mistake.
(vi) on forfeiture of shares
(vii) on bankrupcty of member/
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