B Com : Termination of Membership - Members & Shareholders, Company Law B Com Notes | EduRev
The document Termination of Membership - Members & Shareholders, Company Law B Com Notes | EduRev is a part of the B Com
Course Company Law
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Cessation of Membership
A person may cease to be a member of a company :
- If he transfers his shares to another person.
- By the sale of his shares by the company in exercise of right of lien over his shares.
- By forfeiture of his shares;
- By a valid surrender of his shares.
- By the death of a member. The estate of the deceased remains liable until the shares are registered in the name of his legal representative.
- By his insolvency.
- By his rescission of contract to take shares on the ground of misrepresentation or fraud.
- By the winding-up of the company, of course he remains liable as a contributory.
- By redemption of redeemable preference shares.
- By issue of share warrants to him in exchange of fully paid shares.