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Question
Explain the following Term/Concept.
Member
Solution
(1) A person who is a subscriber to the Memorandum of Association of a company and whose name is entered in the Register of Members of a company is called a member of the company. The term ‘member’ also includes equity shareholders whose name is entered as a beneficial owner in the records maintained by Depository.
(2) A person becomes a member of the company when he agrees in writing to purchase shares of the company and his name is entered in the Register of Members of the company. Any entity i.e. person and organisation competent to enter into or make contracts can become a member of the company. The most common and easiest way to become a member of a company is to buy the shares of a company.
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