Subscriber to memorandum not a shareholder if amount unpaid

P C Agrawal (Registered independent director Past Ch)   (8229 Points)

23 February 2012  

Dear friends,

 

CLB Mumbai Bench in its order (copy attached) has held that a subscriber of Memorandum of Association of a company is not a shareholder if he has not paid subscripttion amount and accordingly he cannot file petition u/s 397-398 of Companies Act 1956.

 

Thanks