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Membership - Coggle Diagram
Membership
Member Sec 2 (55)
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3) Every person holding equity shares of a company and whose name is entered as beneficial owner in the records of the depository
Who can become a Member?
- Company as a member of another company
However, there are certain exceptions to this rule enumerated below
Where a subsidiary company acts as the legal representative of a deceased member of the holding company
If the subsidiary company is a trustee, for some other shareholder, the holding company or any subsidiary of it, not being beneficiary except as lender of money in the ordinary course of business
A subsidiary company can continue to be a member of its holding company, if it was its member before becoming subsidiary. But in this case, the subsidiary company cannot exercise any right of vote at any meeting of the holding company
- Partnership firm as a member
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- Person taking shares in fictitious name
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