A member is a person who has allowed his name to be listed in the membership register or who owns a share of any company. fxcm You should be competent to enter into contracts in order to qualify for membership.
It is common to have a misperception about what it means to be a member of a company (Co). Do you find yourself in the same situation? Majority of people perceive that a person who holds the shares of a company is 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 someone who has consented to his name being listed in the membership registry. You should be competent to enter into contracts in order to qualify for membership. Here are ways of acquiring membership:
1. Subscribers to the memorandum of association become original members of a company from the date of its incorporation. If you subscribe to it, then you become a member. You will not be required to submit an application for membership and the entry of your name into 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. You can add your name to the membership register when you receive shares. You can become a member by getting your name in the register.
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. You can attain membership by succession. 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. Your name can be listed in the register of membership as per the order of the court.
9. In case an existing equity share holder renounces her right shares to you as her nominee, then you can get your name listed in the register of membership.
10. If you hold debentures and you apply to the company to convert them into shares and the application is accepted, then you become a member of that company after only getting your name listed in the register of membership.
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'll be estopped from denying the fact that you are a member thus you become responsible for the liabilities of membership.