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Question
Justify the following statement.
Insolvent person ceases to be the Member of the company.
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Solution
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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| 6) To attend a board meeting | |
| 7) Duties of member | |
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In case of death or insolvency of a member, he will cease to be a __________
Complete the sentence:
Members have a right to appoint and remove the __________
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| Group A | Group B |
| Minor | ___________ |
Select the correct option form the bracket.
| Group A | Group B |
| Co-operative | ___________ |
Answer in one sentence:
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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.
Explain the following Term/Concept.
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Justify the following statement.
Member and Shareholder are interchangeable terms.
Answer the following question:
Explain the circumstances when Member is not a shareholder and vice-versa.
