By allotment of shares. One who is allotted shares on application can become a member of a company. Their ma of application for allotment of shares itself amount to a consent for emohnent as
3. Be- aeeeptirg nomination on renmmeiafion of am allotment. If an allor fuenr is renounced the nornmee bv acceptmg the nomination becomes ehglble to hold shares He can thus be Ome the m ember of the company the moment hit name is entered in the register of members
1. By transfer of shares A tmnsteree c,m also become a member of the cormpam as soon as If e transfer deed is checked, accepted by Uhe comp my and entered as a member in the register of Members.
5. Be transmission. Due to operation of law if a share is tramsferred i e tr.msmitted= to the legal heir etc. of the existing shareholders, the one who gets the transmission becomes the member Qf gets the company wherehis name is written in the Register of members replacing the existing member.
6, By agreeing to purchase qualification shares. On appointment as directors one is required to agree to take quahfrcation shares as per the provisions of Sectmn 266. The names of such persons may be mentioned in the Articles and Ule prospectus. Such persons are also required to give a written consent to act as direetoors and also am and pay for the qualification shares. Under the provision of Sechon 266'2) such persons are placed in the same position as the subscribers to the memorandum. Thus they automatically become Ule members of the company as soon as the company is registered
i. By surrendering tiie share warrant. Provisions are that one vat ho holds the share warring Cannot remain a member of a cwmpany However, if he sun coders the share warrant and get the shares replacing the warrant he becomes eligible to become the member. He becomes a member as well by surrendering his share warrant
8. Bv estoppel. If a person holds humseif out as being m a position of ownership which though is not true, he himself and the parties concerned
The company has a right to refuse the registration of transfer without assigmng arts reason The compauv, however, is under legal obligation to send a notice to the transferee informing him about ills decision to refuse the registration within two months from the date of the receipt of the transfer or transmission instrument An appeal ag t such a refusal is admissible The appeal is made to the Gennnent of to the aggrieved party 5. Section 113
If the Board takes a rlffasioa to accept the nansfcr the share certificate should be completed and dehvery of the same must he made within tT,'O months from the date of the receipt of the apphcation for transfer 6. Section 112
When the transferee transfers only apart holding and holds onlyone share certificate for a number of shares, he in such a case is required to get the share certificate certified by the Registrar and gets the date of presentation endorsed; thereafter he executes Uhe transfer instrument and present the same to the campany along uitl the certified share cerrrficate
EFFECTS OF EXECUTION AND REGISTFR4TION'OF TRANSFER
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