sec 41 of cos act,1956
This query is : Resolved
30 August 2010
Plz clarify sec 41(2) of the cos act. Can a person be a member without holding equity shares and merely by egreeing in writing to have his name entered in the register of members ?
30 August 2010
Membership by agreement in writing
No person can become a member unless he has agreed in writing. Agreement in writing is must to become a member of a company.
To become a shareholder there must be an agreement in writing under section 41(2) of the Companies Act between the shareholder and the company. The words 'in writing' indicate by necessary implication that an application for allotment of shares should be made in writing.
However, as long as a person's name is not entered in the Register of members, he will not be considered as a member despite he has already purchased the shares of the company.
Regards
No person can become a member unless he has agreed in writing. Agreement in writing is must to become a member of a company.
To become a shareholder there must be an agreement in writing under section 41(2) of the Companies Act between the shareholder and the company. The words 'in writing' indicate by necessary implication that an application for allotment of shares should be made in writing.
However, as long as a person's name is not entered in the Register of members, he will not be considered as a member despite he has already purchased the shares of the company.
Regards
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31 August 2010
Thanks very much for the explanation.
31 August 2010
You are always welcome Ji.
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