Comment on the following statements: A holder of a Global Depository Receipt is a member of the company.

As per Section 2(55) of the Companies Act, 2013, member in relation to a company means: the subscriber to the memorandum of the company who shall be deemed to have agreed to become member of the company, and on its registration, shall be entered as member in its register of members; every other person who agrees in writing to become a member of the company and whose name is entered in the register of members of the company; every person holding shares of the company and whose name is entered as a beneficial owner in the records of a depository; Since, holder of Global Depository Receipts is neither the subscriber to the Memorandum nor a holder of the shares, his name cannot be entered in the Register of Members. Therefore, a holder of Global Depository Receipts cannot be called a member of the company. The Overseas Depository Bank as referred in the 'Scheme' is neither the Depository as defined in the Companies Act and the Depository Act nor holding the share capital, therefore, it cannot be deemed to be a member of the company. A holder of Global Depository Receipts may become a member of the company only on transfer/ redemption of the GDR into underlying equity shares after following the procedure provided in the "Scheme"/ provisions of the Companies Act, 2013.