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प्रश्न
Justify the following statement.
Member and Shareholder are interchangeable terms.
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उत्तर
(1) According to the procedure under the Company Law, the name of a person who has been allotted shares (Le. a shareholder) has to be entered in the Register of Members. Thus, he becomes a member of the company. It is for this reason that the two terms ‘member’ and ‘shareholder’ are interchangeably used to mean the same person. However, this is true in the case of (i) a company limited by shares, (ii) a company limited by guarantee and having a share capital, and (iii) an unlimited company having a share capital.
(2) But in the case of a company limited by guarantee without share capital and an unlimited company without share capital, a member is not a shareholder. Thus, a member may or may not be a shareholder and Vice versa. A person who subscribes to the Memorandum of Association may not have been allotted any shares. He is a member but not a shareholder. A shareholder who has transferred his shares ceases to be a shareholder but continues to be a member till the transfer 15 registered. Thus, a person may be a member without being a shareholder, or he may be a shareholder without being a member.
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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.
Select the correct answer from the options given below and rewrite the statement:
When a person buys shares of a company by filling up an application form, the person becomes a member by _________.
Select the correct answer from the options given below and rewrite the statement:
____________ means a person ceases being a member of the company of membership.
Select the correct answer from the options given below and rewrite the statement:
A member has the right to participate in General Meetings means, he has a right to ________
Match the pairs:
| Group ‘A’ | Group ‘B’ |
| a) Insane person | 1) Transfer of shares by operation of law |
| b) Foreigner | 2) Cannot be a member |
| c) Transmission of shares | 3) Cessation of membership |
| d) Surrender of shares | 4) To get copies of Auditor’s, Directors’ Report, etc. |
| e) Right of Members | 5) Can be a Member |
| 6) To attend a board meeting | |
| 7) Duties of member | |
| 8) Surrendering all assets to the company | |
| 9) Demand or claim money from the company | |
| 10) Transfer of shares by order of Secretary |
Write a word or a term or a phrase which can substitute the following statement:
A person whose name is entered in Register of Members.
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:
Buying shares is the most common way to become a Member of the company.
Find the odd one:
Find the odd one:
Select the correct option form the bracket.
| Group A | Group B |
| Minor | ___________ |
Select the correct option form the bracket.
| Group A | Group B |
| Co-operative | ___________ |
Explain the following Term/Concept.
Transmission of Shares
Justify the following statement.
A Foreigner can invest in shares of an Indian company.
Justify the following statement.
Members of company are entitled to several rights.
Answer the following question:
Explain the circumstances when Member is not a shareholder and vice-versa.
