1. A person who subscribes to the Memorandum of Association inullediately becomes the member, even though no shares are allotted to hill. In case
shares are not allotted to the subscriber, he is a member but not the shareholder of tlle company.
2. A holder of a share warrant is a shareholder but not a member as his name is removed from the register of ill embers immediately after the
issue of such warrant. .
3. A legal representative of a deceased member becomes a shareholder immediately on the death of tlle member but he is not a member until he gets his
name entered in the register of members.
4, A person who acquires the shares in the open market may be shareholder but he does nor become the member automatically. .It is only when the
name of the transferee is recorded in the register of members that he becomes the member. Therefore, a person may be a shareholder but may not be a
member.
5. A person who has transferred his share to some. other person shall continue to be treated as the member of the company (even though he may not be
a shareholder) till the transfer is registered and the name of the transferee is recorded in the register of members.
6. When a person is declared insolvent, he is no longer the shareholder,
slough he continues to be the member of the company.
7. A company limited by guarantee or an unlimited company having
no share capital will have only members but no shareholders.
No comments:
Post a Comment