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Justify the following statement. Insolvent person ceases to be the Member of the company. - Secretarial Practice

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प्रश्न

Justify the following statement.

Insolvent person ceases to be the Member of the company.

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उत्तर

A person having insufficient assets to meet debts and liabilities is called an insolvent. It is illegal for an insolvent person to enter into any contract or agreement with another person. When a member of a company is declared by the court of law as insolvent. His official receiver or assignee transfers his shares in favour of his creditor in settlement of his debts. On such transfer of shares, the membership of the insolvent member is terminated. Thus, an insolvent person ceases to be a member of the company.

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Members of a Company
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अध्याय 5: Members of a company - Exercise Q.5 [पृष्ठ ७५]

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बालभारती Secretarial Practice [English] 11 Standard Maharashtra State Board
अध्याय 5 Members of a company
Exercise Q.5 | Q 3 | पृष्ठ ७५

संबंधित प्रश्न

Select the correct answer from the options given below and rewrite the statement:

________ is a person whose name is entered in the Register of Members.


Select the correct answer from the options given below and rewrite the statement:

A _______ cannot be a member of a company.


Write a word or a term or a phrase which can substitute the following statement:
End of membership of a person.


Write a word or a term or a phrase which can substitute the following statement:
The subscribers of this document are considered as Members of the company.


State whether the following statement is True or False:

Both, individuals and body corporate can be members of the company.


State whether the following statement is True or False:

Karta of HUF can be a member of the company.


State whether the following statement is True or False:

Member is entitled to profits of the company when a dividend is declared.


Find the odd one:


Find the odd one:


Complete the sentence:

A person whose name is entered in the Register of Members of a company is called __________


Select the correct option form the bracket.

Group A Group B
Co-operative ___________

Correct the underlined word and rewrite the following sentence:

A Minor can be a member of a company.


Correct the underlined word and rewrite the following sentence:

Partnership Firm can be a member of a company.


Justify the following statement.

Member and Shareholder are interchangeable terms.


Justify the following statement.

Members of the company have some fundamental corporate decision-making rights.


Answer the following question:

Explain the circumstances when Member is not a shareholder and vice-versa.


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