Q.Shares that are given as consideration to the service provider to the company _____.

A service provider who is allotted shares as consideration becomes a shareholder and therefore acquires membership — the correct option is (C).

When a company allots shares to a person as consideration for services rendered (for example sweat equity or shares issued for value received other than cash), those are genuine shares registered in the person's name. Once the name is entered in the register of members, the person becomes a member with the usual rig …

Signing the subscription (association) clause of the Memorandum makes a person a member — option (C).

The Memorandum of Association contains several clauses (name, registered office/situation, objects, liability, capital and subscription/association). The subscription clause is where the signatories declare their desire to form the company and agree to take at least one share each. By signing this clause, the subscribers automatically become …