A member is someone who has given his consent to have his name listed in the membership registry or who owns shares of any company. web site You should be competent to enter into contracts in order to qualify for membership.
There is a misconception about attainment of membership of any company (Co) and who a member is. Are you also in this situation? The majority of people believe that someone who owns shares in a company must be a member. But this is not hundred percent true because a person may be a holder of shares but she is not a member.
A member is a person who has allowed his name to be listed in the membership register. To qualify for membership, you must be able to sign contracts. Here are ways of acquiring membership:
1. Subscribers of the memorandum become the original members of the company on the date it was founded. If you subscribe to it, then you become a member. You won't be required to apply for allotment and entry of your name in the register of members.
2. If you agree to purchase qualified shares or be appointed as the first director of a public company, then you attain membership.
3. When you apply for shares and you are allotted the shares, then you can get your name listed in the register of membership. By getting your name on the register, you acquire membership.
4. Shares of a public company are freely transferable. If you buy shares on the open market from someone and then have them transferred to your name through an instrument called a share transfer form, the name of the person who sold you the shares is removed from the membership register and replaced with yours. You have acquired membership by transfer of shares.
5. By succession, you can become a member. You can inherit the shares of the deceased, insane or insolvent member by only producing legal evidence of her entitlement and get your name listed in the register of membership.
6. You can become a member by converting your share warrants into share certificates. Once you've requested the conversion, and it has been accepted, you will be listed in the membership register.
7. If you receive shares in exchange for something other than money, you are a member if your name is entered into the membership register. If you accept shares in exchange for services rendered or property sold, you will be a member.
8. You can be a member through an order of the court. You can have your name listed in the membership register by court order.
9. If you are the nominee of an equity shareholder who has renounced her rights, you can have your name entered in the membership register.
10. You become a shareholder of a company if you have debentures, and you ask the company to convert the debentures into shares.
11. Lastly, you can attain membership through acquiescence or estoppel. This happens when you knowingly allow your name to remain in the register of members even after you have disposed of your shares or hold yourself as a member by making others believe that you are a member. You will be prevented from denying that you are a shareholder and therefore you will become responsible for all the obligations of membership.