ABSTRACT

A share in the share capital of the company, including stock, is the definition of the term
‘Share’. This is in accordance with Section 2(84) of the Companies Act, 2013. In other
words, a share is a measure of the interest in the company’s assets held by a shareholder.
In this article, we will look at the different types of shares like preferential and equity
shares. Further, we will understand certain definitions and regulations surrounding
them.The Memorandum and Articles of Association of the company prescribe the rights
and obligations of shareholders. Further, a shareholder must have certain contractual and
other rights as per the provisions of the Companies Act, 2013.Section 44 of the
Companies Act, 2013, states that shares or debentures or other interests of any member in
a company are movable properties. Also, they are transferable in the manner prescribed in
the Articles of the company. Further, Section 45 of the Act mandates the numbering of
every share. This number is distinctive. However, if a person is a holder of the beneficial
interest in the share, then this rule does not apply The shares of company are movable
property and are transferable in the manner provided in the Articles of Association. A
share is undoubtedly a movable property in the same way in which a bale of cloth or a
bag of wheat is a movable property. Such commodities are not brought in to existence by
legislation but a share in a company belongs to a totally different category of property. It
is incorporeal in nature and it consists merely of a bundle of rights and obligations.

INTRODUCTION

Shareholder of a firm. In corporate legislation, a member is generally defined as (1) the

subscriber to a firm's memorandum of association (or articles of incorporation) who is
deemed to have agreed to become a member of the firm, and whose name is entered in
the firm's register of members when the firm is registered (or incorporated), and (2) every
other person who agrees to become a member of the firm and whose name is entered in
the firm's register of members. Shareholders who join a firm at its inception are called
founder members.

Cessation Of Membership Of A Company. The Occurrence of one or more of the

following events generally results in being a person getting disassociated from and cease
to be a member of a registered company and consequently his name is removed from the
register of members or register of beneficial owners of a company. a person may ceases
to be a member by transfer , death,forfeiture ,surrender, on winding upof the company
and otherwise in accordance with the provisions of the company's articles of association.
OBJECTIVE

The principle objective of this project is to study the membership status of the member
after call , forfeiture and surrender.

HYPOTHESIS

when the shareholder make defults on his calls the company has right to forfeit the
shares and surrender in done by the shareholder himself when he is unable to pay
calls.

RESEARCH METHODOLOGY

The methodology adopted is largely analytical and descriptive. Reliance has been placed
largely on secondary sources like bare act, books and articles. The lectures and classroom
discussion have been rich with valuable and gave direction to the research pointers.

BIBLIOGRAPHY

·0 Avtar singh -company law -17 th edition-EBC

·1 Companies Act with Rules (Hardbound Pocket Edition

·2 M. C. Bhandari -A Guide to Company Law Procedures

·3 Catherine Roberts and Leslie Kosmin-Company Law, Practice and Procedure

·4 Krati Rajoria-company law – 2016

·5 Dr. Ashok K. Jain- company law

·6 Dr. Ashok K. Jain- Company Law – 2018