A person whose name is in the register of members is a:

Member. Members are recorded in the register of members.

Membership is acquired by:

Allotment of shares. Allotment or transfer of shares creates membership.

Which of these ends membership?

Transfer of all shares. Transferring all shares terminates membership.

A member's right is to:

Attend general meetings and vote. Members can attend and vote.

Which is a statutory register?

Register of members. Register of members is a statutory register.

Maharashtra State Board · HSC Commerce · Class 11 (Std XI)

Class 11 Secretarial Practice Chapter 5: Members of a Company

Short notes, key concepts, quick revision and practice MCQs with answers

A member is a person whose name is entered in the register of members. The chapter explains who can become a member, how membership is acquired and ended, and members' rights.

Key concepts: Members of a Company

Member and shareholder: A member is a person on the register of members. A shareholder holds shares. Usually the same person, but with fully paid shares converted to stock or in a company without share capital, they can differ.
Acquiring membership: By subscribing to the memorandum, by allotment of shares, by transfer or transmission, or by buying shares.
Termination: By transfer of shares, death, insolvency, forfeiture, surrender, or winding up of the company.
Rights: Right to vote, receive notice, receive dividend, inspect registers and attend general meetings.

Quick revision: important points

Register of members is a statutory register.
Membership can be ended when shares are transferred to another person.
Members are the owners of the company.

Practice MCQs with answers

A person whose name is in the register of members is a:
1. Member
2. Debtor
3. Auditor
4. Director
Show answer
Answer: A. Member
Members are recorded in the register of members.
Membership is acquired by:
1. Allotment of shares
2. Buying a car
3. Marriage
4. Age
Show answer
Answer: A. Allotment of shares
Allotment or transfer of shares creates membership.
Which of these ends membership?
1. Transfer of all shares
2. Getting a promotion
3. Buying more shares
4. Holding a meeting
Show answer
Answer: A. Transfer of all shares
Transferring all shares terminates membership.
A member's right is to:
1. Attend general meetings and vote
2. Sign cheques of the company
3. Appoint themselves as director
4. Fix the price of goods
Show answer
Answer: A. Attend general meetings and vote
Members can attend and vote.
Which is a statutory register?
1. Register of members
2. Visitors' diary
3. Canteen list
4. Lost and found
Show answer
Answer: A. Register of members
Register of members is a statutory register.

All Class 11 Secretarial Practice chapters

Class 11 Secretarial Practice notes: all chapters