The financial encyclopedia uses cookies to improve your user experience. Find out more here!



 

 


 

Members of companies
 

 

A person becomes a member of a company when his name is entered in its register of members. Subscribers to the memorandum of association become members automatically. Other persons are entitled to registration when allotted shares on application, or when shares are transferred to them. Strictly speaking, anyone whose name does not appear on the register is not entitled to the rights of membership. A court may order rectification of the register if a person's name is wrongly omitted. On the other hand, entries in the register are not conclusive, and a person may have his name removed if it has been wrongly entered, though application to the court may be necessary first.

Reference: The Penguin Business Dictionary , 3rd edt.