Can Preference Shareholder be a member of company?
Can preference shareholder be a memeber of company?
Baisakhi Rakshit (Article) (28 Points)
21 November 2011
9 Replies
Prashanth
(Chartered Accountant)
(2322 Points)
Replied 22 November 2011
@ Raksh*t, there are two types of members 1.Equity and the other one is 2.Preference share holder
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17858 Points)
Replied 29 November 2011
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.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17858 Points)
Replied 29 November 2011
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.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17858 Points)
Replied 29 November 2011
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.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17858 Points)
Replied 29 November 2011
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.
Charu Srivastava
(Company Secretary)
(4210 Points)
Replied 29 November 2011
Yes, preference Shareholders are the members of the Company and hence the entry thereto should be made in the Register of Members.
Charu Srivastava
(Company Secretary)
(4210 Points)
Replied 29 November 2011
Yes, preference Shareholders are the members of the Company and hence the entry thereto should be made in the Register of Members.
Bharadwaj Tallapragada
(CA-FINAL:NOV2015 ASPIRANT)
(627 Points)
Replied 07 November 2013
Point 1 and point 2 of sec 41 doesn't include prefernce shareholder specifically.
Point 3 has only equity shareholder, and benificial holder in depository.
Then how can it be said that preference shareholder is a member of a company?
CS Premjith
(Company Secretary)
(499 Points)
Replied 09 November 2013
Charu is right.
Preference share holders are also the members of the company and needs to be entered in the Register of Members.
They are also shareholders of the company and they receive dividend. The only difference is with respect to their preferential rights. In the Schedule V Format (annual return) we have to give total number of members. Since preference shareholders are also members, their number also has to be included therein.
Recent Topics
- Challan Sl number starting zero not getting saved
- AY25-26 ITR2 Excel utility
- Validity of Supplementary Reports and Scrutinizer'
- 80 D Health insurance deduction
- Demand raised for interest on short payment of tax
- Any improvement in ITR processing time now?
- Itr 4 is balance sheet compulsory
- Interest from SCSS in post office
- TDS Not claimed for FY 2023-2024
- GST 2 Unit
Related Threads
Trending Online Classes
CAclubindia
