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termination of membership

(1) A person who is a member of the company, by transfer of shares, transfers his shares to any other person, in which case his membership is terminated because in his place the name of the transferee is written in whose favor the shares are transfer has taken place.

(2) In the event of the death of a member, his membership of the company ceases to exist and the names of his legal heirs are written in his place.

(3) By forfeiture of shares When a shareholder fails to pay the amount of any call remaining on the shares after having been duly called for, the directors of the company forfeit his shares and the person shall be named in the register of members. , in which case the membership of that person is terminated.

(4) When a shareholder finds himself unable to pay the outstanding calls for shares by surrender of shares, he may surrender the shares to the company. Even after surrendering the shares, the membership of the shareholder terminates.

(5) By exercise of lien, if a company, using its lien on shares, sells the shares of a member, then in such case the membership of that member terminates.

(6) If a person buys shares of the company on the basis of misstatement or false statement made in the prospectus of the company, then he has the right to relinquish the contract of purchase of shares. In such a case the membership of the shareholder who renounces the contract ceases to be in the company.

(7) When a member is declared insolvent, his membership automatically terminates when a member is declared insolvent.

(8) On buy back of shares, if a company buys back its own shares and a member of the company sells all his shares to the company, then he ceases to be a member of the company.

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