Methods on How to Attain Membership of a Company

A member is someone who has given his consent to have his name listed in the membership registry or who owns shares of any company. click for source You should be competent to enter into contracts in order to qualify for membership.

There is a misconception about attainment of membership of any company (Co) and who a member is. Do you find yourself in the same situation? Majority of people perceive that a person who holds the shares of a company is a member. But this is not hundred percent true because a person may be a holder of shares but she is not a member.

A member is someone who has consented to his name being listed in the membership registry. You should be competent to enter into contracts in order to qualify for membership. You can become a member in several ways:

1. Subscribers to the memorandum of association become original members of a company from the date of its incorporation. If you subscribe to it, then you become a member. You won't be required to apply for allotment and entry of your name in the register of members.

2. You can become a member if you agree to buy shares that are qualified or if you accept the appointment as a first director in a public company.

3. When you apply for shares and you are allotted the shares, then you can get your name listed in the register of membership. By getting your name on the register, you acquire membership.

4. Shares of a public company are freely transferable. When you purchase shares from a person in the open market and get them transferred to you through the execution of an instrument termed as share transfer form, then the transferors name is deleted from the register of membership and your name entered in it. You have acquired membership by transfer of shares.

5. You can attain membership by succession. You can inherit the shares of the deceased, insane or insolvent member by only producing legal evidence of her entitlement and get your name listed in the register of membership.

6. By converting your warrants to share certificates, you can become a shareholder. Once you've requested the conversion, and it has been accepted, you will be listed in the membership register.

7. If you receive shares in exchange for something other than money, you are a member if your name is entered into the membership register. This happens if you accept shares for the services you rendered to the company or properties you had sold to it.

8. A court order can make you a member. Your name can be listed in the register of membership as per the order of the court.

9. If you are the nominee of an equity shareholder who has renounced her rights, you can have your name entered in the membership register.

10. You become a shareholder of a company if you have debentures, and you ask the company to convert the debentures into shares.

11. Lastly, you can attain membership through acquiescence or estoppel. You can achieve membership by allowing your name to be listed in the members' register even after disposing of your shares, or by convincing others that you are one. You will be prevented from denying that you are a shareholder and therefore you will become responsible for all the obligations of membership.