(A) 41. DEFINITION OF "MEMBER" (Companies Act, 1956)
(1) 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.
(2) 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.
[(3) Every person holding equity share capital of 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.]
So as per above definition Trust comes under category stated in section 41(2)
However Companies Act, 2013 is silent on the above provisions therefore as per stated rule provisions of Companies Act, 1956 is aplicable in this regard.
(B) As per section 5 of LLP Act, 2008 only an individual or body corporate may be a partner in a Limited Liability Partnership. But Trust is neither individual nor a Body corporate. Therefore, Trust cannot become a partner in LLP.
(C) Section 20 of Indian Trust (Amendment) Act 2016
Where the trust-property consists of money and cannot be applied
immediately or at an early date to the purposes of the trust, the trustee shall, subject to
any direction contained in the instrument of trust, invest the money in any of the
securities or class of securities expressly authorised by the instrument of trust or as
specified by the Central Government, by notification in the Official Gazette:
Provided that where there is a person competent to contract and entitled in
possession to receive the income of the trust-property for his life, or for any greater
Looking to all the above provisions it is clear that Trust comes under definition of section 41(2) and therefore it can become a member in the company. But since Companies Act, 2013 is silent on this provision, Companies Act, 1956 will be applicable.
Conclusion: Hence, Trust can become a member in the Company.
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