Membership in a Company

Study Notes

Membership in a Company

Anyone can become a member of a company by buying or subscribing to its shares, either during the initial public offering (IPO) or subsequently through a stock exchange.
Any type of person or entity can become a member of a company, including individuals, organizations, and other companies.

Rights of a Member

Members have the right to receive a copy of the company's annual report and financial statements.
Members have the right to attend and vote at the company's annual general meeting (AGM) and any extraordinary general meeting (EGM).
Members are entitled to participate in the company's profits through dividends, if declared.
Members can inspect the company's statutory registers and minutes of general meetings.

Liabilities of a Member

The liability of a member is limited to the amount unpaid on their shares in a limited liability company.
Members are not personally liable for the company's debts or obligations beyond the amount invested.

Termination of Membership

Membership in a company can be terminated by transferring or selling one's shares to another person.
A member may cease to be a member due to the death of an individual or the winding up or liquidation of a corporate entity.
A company can terminate a member's membership through a compromise or arrangement under the Companies Act.

Description

Test your knowledge on membership in a company with this quiz! Learn about the rights and responsibilities of being a member, the registration process, and the powers delegated to directors. Challenge yourself and see how well you understand the role of a company member.