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Answer in Brief · Q7

Q.State any four ways in which the membership of a company may come to an end.

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Four representative ways in which membership of a company may come to an end:

  1. Transfer of shares — once a transfer is registered, the transferor ceases to be a member for those shares.
  2. Transmission of shares — the original member's membership ends by operation of law on death, insolvency, or lunacy, and the legal representative is substituted.
  3. Forfeiture of shares — the company cancels a member's partly-paid shares, following its Articles' procedure, for non-payment of calls.
  4. Winding up of the company — once the company is wound up and dissolved, all membership necessarily ends. …

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