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MCQs · Q2

Q.Which of the following CANNOT be registered as a member of a company in its own name?
(A) An individual who is a major
(B) Another company
(C) A partnership firm, in the firm's own name
(D) A foreign national, subject to FEMA compliance

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Registration as a member requires either natural legal personality (an individual with contractual capacity) or a recognised legal-person status (such as a company).

Option-by-option analysis:

  • (A) Incorrect (i.e., this one CAN become a member) — a major individual has full contractual capacity and can freely become a member.
  • (B) Incorrect (i.e., this one CAN become a member) — a company is a legal person and can become a member of another company, subject only to the Section 19 restriction on a subsidiary holding its holding company's shares. …

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