Membership of Company “The signatories to the memorandum of association are deemed to be the members of a company and, after the company’s incorporation, their names are listed as members in the company’s register of members”.

Test of Membership Any person who is a signatory to the company’s memorandum shall be deemed to be member. For a person other than a signatory to the memorandum, it is necessary that he gives his written consent to become a member and that his name is entered in the company’s register of members.

Who Can Become a Member? Individual Partnership firm Joint Hindu Family Company Registered Society Married Joint Holders

Ways of Acquiring Membership By Subscribing to the Memorandum By Application and Allotment By Agreeing to Purchase Qualification Shares By Transfer of Shares By Transmission of Shares or Succeession By Holding out or Doctrine of Estoppel By Surrendering Share Warrant Membership by Loan

Termination of Membership 1. Transfer of Shares 2. Forfeiture of Shares 3. Valid Surrender of Shares 4. Death of Member 5. Insolvency of Member 6. Exercise of Lien 7. Decree of the Court 8. Redemption of Preference Shares 9. Winding Up of Company

Rights of M embers 1. Individual Rights of Members Right to Transfer Shares Right to Inspect Certain Books Right to Obtain Copies Right of Pre-emption Right Regarding Meetings Right to Nominate for Appointment of Auditor Right to Apply for Appointment of Liquidator Right of Application to National Company Law Tribunal 2. Collective Rights of Members Rights Enforceable by Simple Majority Rights Enforceable by definite Majority Rights of Minority Members Documentary Rights Legal Rights

Liabilities of Members Liability to Pay the Price of Shares Liability in Unlimited Company Liability in Company Limited by Guarantee Liability in Case of Reduction of Members below Minimum Liability on Transfer Liability on Winding Up of Company Liability as Member Increasing the Liability with the Consent of Members Taking Shares in Fictitious Name

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