The following are the various mode/methods through which a person can acquire the membership of a Company. Acquiring membership, in simple words, means becoming a shareholder of the company.
In accordance with the sec 2(55) of the companies act 2013, a person can become the member of the company in the following ways.
- by subscribing to the memorandum of association,
- by agreeing to become a member:
- by holding equity share capital of the company and on his name being entered as beneficial owner in the records of the depository.
Agreeing to become a member
Agreeing to become a member can happen in any of the following ways.
- by making an application to the company for allotment of shares, or
- by executing an instrument of transfer of shares as transferee, or
- by consenting to the transmission of shares of a deceased member in his/her name; or
- by acquiescence or estoppel and on his name being
entered in the register of the members of the company.
In case of One Person Company, the nominee whose name is mentioned in the memorandum [Sec. 4(1)(f) of the companies act 2013] becomes the member, in the event of death of the one and only member of the company.