A trade union of auto drivers applied for shares in the fresh issue of a company. The company rejected the application, however, the Company was ready to allot shares in the Joint names of the members of the trade union.

A trade union registered under the Trade Union Act, 1926 can be registered as a member and can hold shares in a company in its own corporate name [All India Bank Officers Confederation v. Dhanlakshmi Bank Ltd., (1997)]. Hence, a registered trade union can become members of a company. If the Auto drivers association is a registered trade union then the rejection by the company to allot shares in the Association name is not justifiable. But if it is not registered then the members of the association can hold the shares in their joint names only and shares cannot be allotted in the name of the trade union.