Company is considered the member of the company

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Reference no: EM132234092

Every person who has agreed in writing to become a part of the company and also holds shares of the company is considered the ‘Member of the Company’ and is said to hold membership in a company. The name of the member of the company is entered as ‘Beneficial owner in the record of depository’.If a person agrees to sign the memorandum and pledge his presence on the board of members, he becomes the member of the company.Names of the people who have agreed to join the membership of the company should be entered in Register of Members.Along with the agreement, if they’ve agreed to share the company’s shares they become the Shareholders of the Company.A shareholder would also become a member of the company if he ‘agrees in writing’, and by the following methods: By transfer of shares, by transmission of shares or by Estoppels (Membership Without sufficient Cause).

Other than a public listed company [ownership dispersed among general public in shares of stock and traded on stock exchange], a company cannot own shares itself.

Reference no: EM132234092

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