Q.Explain methods to obtain membership.

Methods of obtaining membership: subscribing to the memorandum, application and allotment, transfer, transmission, beneficial ownership in demat form, and by qualification shares / consent (acquiescence). A person becomes a member of a company by any of these methods: 1. By subscribing to the Memorandum of Association: the persons who sign the memorandum become members automatically on incorporation, without any application or allotment; their names go into the register of members. 2. By application and allotment: a person applies for shares and, on the company allotting shares to him and entering his name in the register, becomes a member. 3. By transfer of shares: a person who buys/receives shares from an existing member through a valid transfer becomes a member on registration of the transfer. 4. By transmission of shares: on the death, insolvency or lunacy of a member, the shares pass by operation of law to the legal representative/official assignee, who becomes a member. 5. By holding shares in demat form (beneficial owner): a person whose name is recorded as beneficial owner of shares in the records of the depository is deemed a member. 6. By qualification shares / by consent (acquiescence): a directo …