Explain the meaning of a "member" under the provisions of the Companies Act, 2013. Can a subsidiary company become a member and shareholder of its holding company? Can a foreigner be a member of a company? You are reques

According to Section 2(55) of the Companies Act, 2013, member, in relation to a company, means, The subscribers to the memorandum of a company who shall be deemed to have agreed to become members of the company, and on its registration, shall be entered as members in its register of members; Every other person who agrees in writing to become a member of a company and whose name is entered in its register of members shall, be a member of the company; Every person holding shares of a company and whose name is entered as a beneficial owner in the records of a depository shall be deemed to be a member of the concerned company. A company is composed of members, though it has its own separate legal entity. The members of a company are the persons who, for the time being, constitute the company, as a corporate entity. A subsidiary company as member / shareholder of its holding company As per section 19 of the Companies Act, 2013, a subsidiary company cannot become a member of its holding company. Exceptions: However, a subsidiary can hold shares in its holding company only under the following exceptional circumstances - where the subsidiary company holds such shares as the legal representative of a deceased member of the holding company; or where the subsidiary company holds such shares as a trustee; or where the subsidiary company is a shareholder even before it became a subsidiary company of the holding company. Foreigners as members A foreigner may take shares in an Indian company and become a member subject to the provisions of the Foreign Exchange Management Act, 1999, but in the event of war with his country, he becomes an alien enemy and his power of voting and his rights to receive notices are suspended.