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Question
Justify the following statement.
A Foreigner can invest in shares of an Indian company.
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Solution
Foreigner (Non-Resident-NRI): A foreigner (NRI) can buy shares and become a member of a company but this is subject to Foreign Exchange Regulation Act, 1999 (FEMA 1999) under which the permission of the Reserve Bank of India is necessary before allotment of any shares is made to a foreigner. If at any time the foreigner becomes an alien enemy, his rights as a member of the company are suspended.
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RELATED QUESTIONS
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:
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.
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Book in which names of all members are entered.
State whether the following statement is True or False:
Buying shares is the most common way to become 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:
Members have a right to appoint and remove the __________
Select the correct option form the bracket.
| Group A | Group B |
| Co-operative | ___________ |
Correct the underlined word and rewrite the following sentence:
Partnership Firm can be a member of a company.
Justify the following statement.
Insolvent person ceases to be the Member of the company.
Justify the following statement.
Nominee of the member of OPC becomes its member of the death of the member.
Answer the following question:
Explain the circumstances when Member is not a shareholder and vice-versa.
