Referring to the provisions of the Companies Act, 2013, examine whether a member of the company ceases to be the member thereof in the following situations: (i) A member whose shares are under lien with a company and the
CS Professional · Advanced Company Law and Practice · PYQS · December 2016
Referring to the provisions of the Companies Act, 2013, examine whether a member of the company ceases to be the member thereof in the following situations: (i) A member whose shares are under lien with a company and the company exercises lien on these shares and the shares are sold. Give reasons in support of your answer.
Answer & Explanation:
(i) If the company has exercised lien on the shares of a member in accordance with the provisions in its Articles of Association, the member ceases to be a member on removal of his name from the register of members/beneficial owners if the company enforces its lien by way of sale of such shares.
Topics: Membership
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