Q.Explain the various modes by which the membership of a company may come to an end.

Membership of a company can end in several distinct ways, each with its own legal trigger and procedure.

The Companies Act, 2013 and general company law recognise several distinct ways in which membership of a company comes to an end.

Transfer of shares is the most common route: once a duly executed instrument of transfer is registered under Section 56, the transferor's name is removed from the register and the transferee's name takes its place.

Transmission ends membership on the death, insolvency, or lunacy of a member, once the company registers the legal representative, Official Assignee, or committee of a lunatic on proof of title, and removes the former member's name.

Forfeiture of shares occurs where a member fails to pay a call within the fixed time and the articles authorise forfeiture (as under Table F); after due notice, the Board forfeits the shares, and the member's name is removed, though he may remain liable for calls already due.

Surrender of shares, accepted by the company where the articles permit, has an effect on membership equivalent to forfeiture, and is generally used only where forfeiture would otherwise have been justified.

Buy-back of shares under Section 68 extinguishes the shares the company repurchases, ending membership to that extent.

Redemption of redeemable preference shares under Section 55 similarly cancels those shares and ends the preference shareholder's membership in respect of them.

Reduction of share capital under Section 66, sanctioned by the Tribunal, may extinguish or reduce a member's shareholding, ending his membership if the holding is wiped out entirely. …

Students often list only transfer, transmission, and forfeiture, and forget buy-back, redemption, and reduction of capital as eq …