Question

Explain the following Term/Concept.

Acquisition of Membership

Answer 1

Any person who is competent to enter into a contract can become a member (or acquire membership) of the company after fulfilling certain requirements for the membership in a company.

Membership in a company can be acquired by any one of the following ways. viz.

(1) By subscription to the Memorandum of Association
(2) By an application and the allotment of shares
(3) By holding shares in a dematerialised form (Le. electronic form)
(4) By agreeing to buy qualification shares (5) By transfer sale of shares
(6) By succession (i.e. transmission of shares)
(7) By nomination in the case of One Person Company (OPC). In the case of OPC, the nominee becomes the sole owner in the event of death, insanity or insolvency of the original owner.
(8) By acquiescence i.e. by estoppel or holding out as a member of a company.