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Who can become a Member of the Company? |
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Answer» 1. A Person: Any person who is competent to enter into a contract i.e. he is above the age of 18 years, and not an insane/lunatic or not an insolvent can become a member of a company. 2. Partnership Firm: A partnership firm can not be registered as a member of the company but the partners may hold the shares of a company in their individual name or as Joint Shareholders. 3. Hindu Undivided Family: As Karta is the head of the Hindu Undivided family business, he can buy shares of the company on behalf of the Hindu Undivided Family, but HUF itself cannot be a member of the company. 4. A Company: If the Memorandum of Association grants, then one company can buy the shares of another company and become a member, but the company itself cannot invest in the shares of its own company. 5. Society: A society that is registered under the Societies Act, can buy the shares of a company and become a member. 6. Trust: A registered trust can become a member of a company in its own name. 7. Non-Resident/Foreigner: A nonresident Indian (NRI) can buy shares in a company. It has to fulfill the conditions specified in the FEMA Act, 1999. 8. Limited Liability Partnership: LLP can become a member of a company as it is a juristic person. |
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