Who can be a shareholder under Companies Act 2013?

Shareholders are otherwise known as the members of a company. Under the Companies Act, 2013, any person can become a shareholder and a person could mean an individual, body corporate, an association or a company irrespective of its incorporation.

Who can be a company shareholder?

A company shareholder can be an individual person, a group of people, a partnership, another company, or any other kind of organisation or corporate body. To be a shareholder, you must take a minimum of one share in a company.

Who can be and who Cannot be a shareholder?

1. The persons who have subscribed to the Memorandum of Association of a company. 2. Every other person who has agreed in writing and whose name has been entered in the Register.

Who is a shareholder under Companies Act?

Shareholders of a company are the owners of the company owning equity shares issued by the company. Shareholders of a company are granted various rights and protections under the Companies Act, 2013.

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Can a partnership be a shareholder in a company?

A partnership firm cannot be a shareholder in any of the Company. Similar is the position in the Companies Act, 2013, however if the Partnership firm wishes to hold shares then it can do so by applying for the same in individual capacity of the partners.

Is a shareholder a member of a company?

A member of a company is often called a shareholder. Members of a company have certain rights and responsibilities.

Can a company be a shareholder of itself?

Although it is an area that is not often considered, the Corporations Act expressly prohibits companies owning shares in themselves and there are a series of practical consequences (as well as potentially significant penalties) that can flow. … And no – a company can not own shares in itself.

Can a child be a shareholder?

There is no statutory provision prohibiting a child from owning shares. … That may make it difficult to enforce payment for the shares against a minor. Some companies will not accept shareholders under the age of 18 years by provision in their articles or terms of issue.

What is the difference between member and shareholder of a company?

Key Differences Between Members and Shareholders

A member is a person who subscribed the memorandum of the company. A shareholder is a person who owns the shares of the company. … All shareholders whose name are entered in the register of members are the members.

Are you a related party u/s 188 of Companies Act 2013?

(ii) if any individual other than a director or any firm, private company or other body corporate, if the individual, firm, private company or body corporate holding receives from the company anything by way of remuneration, salary, fee, commission, perquisites, any rent-free accommodation, or otherwise; (iii).

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What is the role of a shareholder in a company?

Shareholders are part-owners of a company, whereas directors are responsible for the management of the company’s business activities. Shareholders’ duties are generally limited to any unpaid amounts on shares they hold, whereas directors have range of duties under federal, state and territory law.

What are the roles and responsibilities of a company shareholder?

Shareholders Duties

  • Changes to the constitution of the company.
  • Declaring a dividend.
  • Approving the financial statements of the company.
  • Winding up of the company by way of voluntary liquidation.

Who may be appointed as director of company?

According to the Companies Act, only an individual can be appointed as a member of the board of directors. Usually, the appointment of directors is done by shareholders. A company, association, a legal firm with an artificial legal personality cannot be appointed as a director. It has to be a real person.

Can a shareholder be a debenture holder?

A person having the debentures is called debenture holder whereas a person holding the shares is called shareholder. … Debentures are part of loan. A shareholder or member is the joint owner of a company; but a debenture holder is only a creditor of the company.

Which of the following Cannot be a member of a company?

Lunatic and Insolvent: A lunatic cannot become a member. An insolvent, however, can become a member and is entitled to vote at the meetings of the company. But his shares vest in the Official Receiver when he is adjudged insolvent. 3.

How do you become a shareholder in a private limited company?

Shareholders can also be known as members, and can become a shareholder by agreeing to take the minimum of one share in the company. The shareholders are the owners of private companies limited by shares, and the number of shares held by each individual represents how much of that business they own.

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