Examine with reference to the provisions of the Companies Act, 2013 whether any of the following persons can become member of the company engaged in the business of producing steel products ? Pawnee Partnership firm Unre

CS Executive · Company Law · PYQS · June 2022
Examine with reference to the provisions of the Companies Act, 2013 whether any of the following persons can become member of the company engaged in the business of producing steel products ? Pawnee Partnership firm Unregistered trade union.

Answer & Explanation:

Subject to the provisions contained in the Memorandum of Association and Articles of Association of the company, any person who is capable to contract can become a member of company. Pawnee - A Pawnee cannot be treated as holder of shares pledged in his favour, and the pawner continues to be member and exercise the rights of member. Pawnee has no right to foreclosure since he never had the absolute ownership at law and his equitable title cannot exceed what is specifically granted by law. A partnership firm is not a legal person and as such it cannot, in its own name, become a member of a company. A trade union registered under the Trade Union Act, can be registered as member and can hold shares but unregistered trade union cannot become member of company.

Topics: Membership

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