A member is someone who has given his consent to have his name listed in the membership registry or who owns shares of any company. how to buy shares in australia You should be competent to enter into contracts in order to qualify for membership.
There is a misconception about attainment of membership of any company (Co) and who a member is. Do you find yourself in the same situation? The majority of people believe that someone who owns shares in a company must be a member. This is not 100 percent accurate because a person can be a shareholder but not a member.
A member is a person who has allowed his name to be listed in the membership register. You should be competent to enter into contracts in order to qualify for membership. You can become a member in several ways:
1. Subscribers to the memorandum of association become original members of a company from the date of its incorporation. You become a member if you subscribe. You won't be required to apply for allotment and entry of your name in the register of members.
2. If you agree to purchase qualified shares or be appointed as the first director of a public company, then you attain membership.
3. You can add your name to the membership register when you receive shares. By getting your name on the register, you acquire membership.
4. Shares of a public company are freely transferable. If you buy shares on the open market from someone and then have them transferred to your name through an instrument called a share transfer form, the name of the person who sold you the shares is removed from the membership register and replaced with yours. This means that you acquired membership through transfer of shares.
5. You can attain membership by succession. By presenting legal proof of her right to inherit, you can get listed in the membership register.
6. By converting your warrants to share certificates, you can become a shareholder. When you request for the conversion and it's accepted, then you can get your name listed in the register of membership.
7. When you obtain allotment of shares for a consideration other than cash, then you attain membership if only you get your name listed in the register of membership. If you accept shares in exchange for services rendered or property sold, you will be a member.
8. A court order can make you a member. You can have your name listed in the membership register by court order.
9. If you are the nominee of an equity shareholder who has renounced her rights, you can have your name entered in the membership register.
10. If you hold debentures and you apply to the company to convert them into shares and the application is accepted, then you become a member of that company after only getting your name listed in the register of membership.
11. Lastly, you can attain membership through acquiescence or estoppel. This happens when you knowingly allow your name to remain in the register of members even after you have disposed of your shares or hold yourself as a member by making others believe that you are a member. You will be prevented from denying that you are a shareholder and therefore you will become responsible for all the obligations of membership.