Allotment of share

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This query is : Resolved

ravi bisht (Querist)

12 September 2013 allotment should be valid only when member agree in writing for the same.. my question is , application for share by puplic is enough or their is any other formalities regarding same.

Ajay Mishra

Ajay Mishra (Expert)

13 September 2013 Hi

All the subscribers of the Memorandum of Association shall be deemed to have agreed to become members of the company and on registration of a company shall be entered as members in the Register of members.

Section 2(27) of the Companies Act, 1956, provides, that a "member", in relation to a company, does not include a bearer of a share-warrant of the company issued in pursuance of section 114.
Section 41 deals with definition of member which provide as under:—
(i) The subscribers of the Memorandum of a company shall be deemed to have agreed to become members of the company, and on its registration, shall be entered as members in its register of members.
(ii) Every other person who agrees in writing to become a member of a company and whose name is entered in its register of members, shall be a member of the company.
(iii) Every person holding equity share capital of a company and whose name is entered as beneficial owner in the records of the depository shall be deemed to be a member of the concerned company.

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