Q.Who can acquire membership?

Any person legally competent to contract and hold shares can acquire membership — individuals, companies, firms/LLPs, HUF, societies/trusts, foreigners/NRIs (subject to rules) and the Government.

Membership of a company can be acquired by any person who is legally competent to enter into a contract and to hold shares, provided he agrees to become a member and his name is entered in the register of members. The persons who can acquire membership are:

• Individual (a major of sound mind) — the most common member; must be competent to contract.
• Minor — cannot contract directly, so a minor can hold shares only through a lawful guardian, who acts on the minor's behalf.
• Company / body corporate — a company can become a member of another company if authorised by its memorandum; it acts through a representative.
• Partnership firm — a firm, not being a separate legal person, generally holds shares in the names of its partners (an LLP, being a body corporate, can hold in its own name).
• Hindu Undivided Family (HUF) — can become a member through its karta.
• Registered society or trust — can acquire membership as permitted by its constitution.
• Foreigner / Non-Resident Indian (NRI) — can become a member subject to the rules and foreign-exchange regulations (FEMA) in force.
• Central or State Government — can hold shares and be a member. …