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How to get membership of a company? Under what circumstances does such membership terminate?

(1) Persons competent to enter into contact – Every person who has the capacity to enter into contract can become a member of the company. In other words, (i) an adult, (ii) a person of sound mind and (iii) every person who has not been disqualified by law to contract, can become a member of the company. Since a contract is created by taking membership of the company, the members

 

Of particular importance is the capacity of the contract. (2) Foreigners A foreign person can become a member of any company which is incorporated within India and there is no contrary provision in this regard in the Companies Act.

 

(3) Non-resident persons: If a citizen of India is not a resident of India, then he cannot become a member of any company amalgamated in India unless he receives permission from the Reserve Bank of India. She goes. any company such person

 

Allotment or transfer of shares can be done only in accordance with the legal provisions of the country. (4) Company The company being a statutory person can become a member of any company, if it is authorized by its councilor memorandum. A company can become a member of another company, but the company cannot be a member of itself.

 

(5) Joint Hindu Family – Karta of any joint Hindu family can buy shares of any company in his own name, accordingly the Karta of the family can become a member of the company and his name in the register of members is Joint Hindu Family. Will be written as the doer of.

(6) Partnership Firm – Partnership firm cannot become a member of the company because it is not a person. But a firm can buy shares of a company in the joint names of all the partners and all the partners will be considered as joint holders of the shares.

(7) Joint Holder of Shares – When two or more together buy shares of the company, then they will be considered as one member, not two.

 

(8) Married woman – Any married woman who buys shares of the company with her personal money can become a shareholder and member of the company.

(9) Truster: If a person (trustee) buys shares in his own name on behalf of any other person, then such person (trustee) is considered to be a member of the company on whose behalf the shares are purchased or held. The company does not consider him a member and cannot hold him liable as a member. Only the name of the shareholder (trustee) is mentioned in the register of members.

(10) Co-operative society Any co-operative society which is registered and having a separate existence from its members can become a member of the company. For this, it is necessary to have a provision in the rules of the committee.

 

(11) Insolvent Persons Until the name of the insolvent person is removed from the register of members, he remains a member of the company and has the right to vote.

 

(12) Fictitious Persons: If any person makes an application for purchase of shares in fictitious names and the shares are allotted in his name, he shall be liable as a member.

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