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Counting of joint share holders in private limited company

CS Sagar Khandelwal (Practice) (87 Points)

12 April 2012

Your expertise opinion is sought for the following query :

Company - ABC Private Limited

Having members as : (1) Mr. M (individual) (2) Mr. M jointly with Mr. P

Whether we recognise it as the Company is having only one (1) member or two (2) members ?

If we say, the Company is having two (2) members, how we should comply with the quorum requirement at AGM ?

Thanks in Advance for your help

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3 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 12 April 2012

only first name( one member ) in joint share certificate will be count for shareholder.

CS Sagar Khandelwal (Practice) (87 Points)
Replied 12 April 2012

But the folios when we enter the names in the register of members are different for Joint and Individual members as the name of members differs.....

Vandana Gour (Company Secretary) (51 Points)
Replied 12 April 2012

In case of joint shareholding, one or more of them may require the company to alter or rearrange the serial order of their names in the register of members of the company. In this process, there will be need for effecting consequential changes in the share certificates issued to them. Since no transfer of any interest in the shares takes place on such transposition, the question of insisting on filing transfer deed with the company may not arise.

A request signed by all the holders, in the existing order and also the proposed order is sufficient which the Board of Directors can consider and effect transposition of names.

I referred this from Majumdar & Kapoor.