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Register of Members

Ronak (Trainee) (126 Points)

09 December 2010

Hi Friends,

I had a query regarding entry to be made in the Statutory register of members as maintained by the Company.

Q. A Public limted unlisted co. alloted 10,000 shares in demat form to 70 employees under esop scheme. Date of Allotment : 1/11/2010. On 7/12/2010 the co. bought back 8000 shares from the employees. Now as on date what entry has to be made in the register of members? Whether it should be two different entries of 10,000 and 2000 or a single net entry showing only the allotment of 2000 shares.

Rgds, Ronak

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9 Replies

HARDIK (COMPANY SECRETARY NCFM (Corporate Governance )) (664 Points)
Replied 09 December 2010

you have to make two entries allotment and buy back both.

Syam kamal (Company Secretary) (156 Points)
Replied 09 December 2010

You would have entered 70 employees name under different folios. You have to give the date of cessasion as member in those employees folio whose shares are bought back and in remarks column just give a remark that the share are bought back.

Any other views please???????

Ronak (Trainee) (126 Points)
Replied 09 December 2010

Hi Shyam,

As mentioned that the shares were alloted in demat mode. So even if i would have made the entry on the date of allotment than in that case i would make only 1 single entry under 1 single folio mentioning the name of the depository as the menber of the company. even on that day i would not have made different entries under 70 different folios.

Further Section 150 is silent on the time within which the entry in the register should be made. So again my query remains the same that as on date can i make a net entry of 2000 without showing 2 different entries , since my RTA would have already shown 2 different entries in his records.

Also Hardik can u add further discussion to ur answer.

Rgds, Ronak

ankit jain (CS trainee) (152 Points)
Replied 09 December 2010

Dear Ronak,

You have to make two entries. One entry you have to make for the allotment of 10000 shares and then in the same folio you have to mentioned about the buy back of 8000 shares in the notes and the balance will be remained i.e., 2000 shares in the same folio.

Any other views?

Syam kamal (Company Secretary) (156 Points)
Replied 09 December 2010

Sorry Ronak. I missed the fact that share were issued in demat form though your company is an unlisted company.

But my question is that why do u want to maintain inhouse Register of Members though you have appointed a Register and Transfer Agent. In all listed companies who appointed RTA they dont maintain the members register, share transfer register etc as they are required to be maintained by RTA

Regards

Syam kamal (Company Secretary) (156 Points)
Replied 09 December 2010

Originally posted by : Syam kamal
	Sorry Ronak. I missed the fact that share were issued in demat form though your company is an unlisted company. But my question is that why do u want to maintain inhouse Register of Members though you have appointed a Register and Transfer Agent. In all listed companies who appointed RTA they dont maintain the members register, share transfer register etc as they are required to be maintained by RTA Regards

Still if you want to keep the Register of Members then Ankit Jain's post would be the best answer according to me

Regards

Admire to CA (student) (60 Points)
Replied 09 December 2010

Sir u have 2 make the 2 seprate entries.read section 77a of companies act.as of the fact its is nature of purged buyack,every record has to been made in thecase of buyback.