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:
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:
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:
Becoming a member of a company.
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:
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:
Members of the company can attend general and Board meetings 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 | ___________ |
Select the correct option form the bracket.
| Group A | Group B |
| ___________ | Can hold shares in the name of partners |
Answer in one sentence:
Which individuals cannot become a member of a company?
Answer in one sentence:
What is the common way of becoming a member of a company?
Justify the following statement.
Member and Shareholder are interchangeable terms.
