Advertisements
Advertisements
Question
Justify the following statement.
Members of the company have some fundamental corporate decision-making rights.
Advertisements
Solution
(1) The members of a company have exclusive rights and power to make fundamental corporate decisions on the issues (matters) such as alterations (change) of registered office clause of the Memorandum of Association, increase in the authorised capital if it needs more fund for modernisation or development, change of the object of the company by passing an appropriate resolution in the general meeting of the company.
(2) In this respect, the members of the company have the power to amend Articles of Association, acquisitions, mergers, and takeovers by the company, appointing a sole-selling agent and Winding-up of the company by passing appropriate resolutions in the general meetings of the company
APPEARS IN
RELATED QUESTIONS
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.
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:
End of membership of a person.
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:
Book in which names of all members are entered.
Write a word or a term or a phrase which can substitute the following statement:
Becoming a member of a company.
State whether the following statement is True or False:
Legal competency to enter into contracts is one of the criteria to become a member of the company.
State whether the following statement is True or False:
Member of the company is conferred with several rights.
State whether the following statement is True or False:
Member is entitled to profits of the company when a dividend is declared.
Answer in one sentence:
What is the common way of becoming a member of a company?
Justify the following statement.
A Foreigner can invest in shares of an Indian company.
Justify the following statement.
Insolvent person ceases to be the Member of the company.
Justify the following statement.
Subscribers to Memorandum of Association are the first members of the company.
Justify the following statement.
Nominee of the member of OPC becomes its member of the death of the member.
Justify the following statement.
Members of company are entitled to several rights.
