“

SHAREHOLDERSCONTROLOVERCOMPANY”

CORPORATELAW

Submi
tt
edby

RAJKUMARMEENA

ROLLNO19072

GROUPNO.:14

Submi
tt
edt
o

MR.RAJATDI
XIT
(
Assi
stantPr
ofessorofLaw)

RAJI
VGANDHINATI
ONALUNI
VERSI
TYOFLAW,
PATI
ALA,
PUNJAB
1|
Page
SUPERVI
SOR’
SCERTI
FICATE
Dat
e:11.
10.2021

Thi
sist
o cer
ti
fyt
hatt
he di
sser
tat
ion t
it
led-SHAREHOLDERS CONTROL OVER
COMPANY submi
tt
edt
oRaj
i
vGandhiNat
ionalUni
ver
sit
yofLaw,Punj
ab,i
npar
ti
al
f
ulf
il
mentoft
her
equi
rementoft
heB.
A.LL.
B.(
Hons.
)cour
sei
sanor
igi
nalandbonaf
ide
r
esear
chwor
kcar
ri
edoutbyRaj
kumarMeenaundermysuper
visi
onandgui
dance.No
par
toft
hispr
ojecthasbeensubmi
tt
edt
oanyuni
ver
sit
yfort
heawar
dofanydegr
eeor
di
ploma,
what
soev
er.

Mr
.RAJATDI
XIT

Assi
stantPr
ofessorofLaw

Raj
i
vGandhi
Nat
ional
Uni
ver
sit
yofLaw,
Punj
ab

2|
Page
ACKNOWLEDGEMENT
I
tisagr
eatpl
easur
ethatIf
indmy
sel
fpenni
ngdownt
hesel
i
nest
oexpr
essmysi
ncer
e
t
hankst
ovar
iouspeopl
ewhohel
pedmeal
ongwayi
ncompl
eti
ngt
hispr
oject
.Iti
smy
pr
ivi
l
eget
oacknowl
edgemyhear
tfel
tgr
ati
tudeandi
ndebt
ednesst
owar
dsmyt
eacher
s
f
ort
hei
rval
uabl
esuggest
ionsandconst
ruct
ivecr
it
ici
sm.Thehar
moni
ousat
mospher
e
ofourschoolpr
ovi
despr
opergui
dancef
orpr
epar
ingt
hepr
oject
.Itwasapr
ivi
l
eget
o
hav
ebeengui
dedbyMr
.RAJATDI
XIT

3|
Page
 CONTENTS
I
NTRODUCTI
ON 5

MEANI
NGOFCOMPANY 5
EVOLUTI
ONOFCOMPANYLAW I
NINDI
A 5
WHOI
SAMEMBER? 5
DEFI
NITI
ONOFSHAREHOLDER 6

WHOCANBECOMEASHAREHOLDER? 6

HOW TOBECOMEASHAREHOLDER? 6
WHOMAYBEASHAREHOLDER…………………………………………………….
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
.……7
CEASI
NGTOBEASHAREHOLDER……………………………………………….
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
………8

BENEFI
TSOFBEI
NGASHAREHOLDER………………………………………….
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
…….
.9

LI
ABI
LITI
ESOFSHAREHOLDER…………………………………………………….
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
……12

CONCLUSI
ON………………………………………………………………………………….
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
.….
..
13

4|
Page
 I
NTRODUCTI
ON
Thei
deaoft
hecompanyhasbeent
her
eforqui
teawhi
l
e.Ov
ert
het
imef
rame,i
ts
hi
ghl
i
ght
sandat
tri
but
eshav
eadv
ancedaccor
dingt
othecul
tur
alchangesexper
ienced
by t
he nat
ion.I
nvi
ew oft
he hi
ghl
i
ght
s such as a r
est
ri
cted dut
y,i
nter
minabl
e
dev
elopmentandsoont
hebusi
nesshassomepr
efer
encesaboutt
hef
orm ofsy
stemi
c
owner
shi
pandassoci
ati
on.

MEANI
NGOFCOMPANY
I
ndi
anCompanyActdef
inesacompanyas“
acompanyf
ormedundert
hisActorany
ot
herpr
evi
ousCompanyl
aws”
.ACompanyi
sal
egalper
sonoral
egalent
it
ythathas
speci
alf
eat
uresspeci
fi
edundert
hel
aw.Acompanyi
sal
egalent
it
y.I
tal
sohel
psi
n
meet
ingt
heeconomi
cendsofacount
ry.I
tcanbeconsi
der
edasasoci
al,economi
c
andl
egal
ent
it
yofacount
ry.

EVOLUTI
ONOFCOMPANYLAW I
NINDI
A
I
ndi
a has r
ecei
ved sev
eralenact
ment
sfr
om Engl
and.Companyl
aw i
s one such
enact
mentwhi
chwasembr
acedf
rom Engl
and.I
n1850t
hef
ir
stCompanyenact
ment
waspr
esent
edi
nIndi
afort
her
egi
str
ati
onofaj
ointcompanywhi
chwasbasedont
he
Engl
i
shCompanyAct1844.Thei
deaofl
i
mit
edl
i
abi
l
itywaspr
esent
edi
ntheEngl
i
sh
CompanyActof1856 whi
ch wasl
aterpr
esent
ed i
nIndi
aint
he y
ear1857.The
Compani
esActwasal
ter
edaf
ew t
imesbet
ween1850and1852andt
heActi
n1852
r
epeal
edal
lot
herActandst
ayedt
il
l1912.TheI
ndi
anCompani
esActof1913was
basedont
heBr
it
ishCompani
esActof1908.Thi
sActexper
iencedaf
ewamendment
s.
Af
teri
ndependencei
twasdi
scov
eredt
hatt
heCompani
esActmustbechangedt
ofi
t
i
ntot
heI
ndi
ansi
tuat
ion,subsequent
lyCompani
esAct1956waspassed.Thi
sActi
s
cur
rent
lyr
epl
acedbyt
heCompani
esAct2013whi
chgott
heassentf
rom t
hePr
esi
dent
on29August2013.

WHOI
SAMEMBER?
Thememberorshar
ehol
deroft
hecompanyi
stheper
sonwhocol
l
ect
ivel
yconst
it
utes
t
hecompanyasacor
por
ateent
it
y.Thet
erm membershar
ehol
derandhol
derofshar
e
ar
eusedi
nter
changeabl
e.
5|
Page
DEFI
NITI
ONOFSHAREHOLDER

Hei
saper
sonwhoownsshar
esi
nacompany
.Hei
sconsi
der
edamemberoft
he
companyandi
tsco-
ownerwi
thcer
tai
nri
ght
sandobl
i
gat
ions.Now acompanymay
i
ssuedi
ff
erentt
ypesofshar
es,
eachwi
thi
tsownpecul
i
arat
tri
but
es.Ther
ight
s,power
s
andobl
i
gat
ionsoft
heshar
ehol
derwi
l
ldependont
het
ypeofshar
eshel
dbyhi
m.

WHOCANBECOMEASHAREHOLDER?
Shar
ehol
der
sar
eal
soknownast
hemember
sofacompany
.Undert
heCompani
esAct
,
2013,anyper
soncanbecomeamemberandaper
soncoul
dmeanani
ndi
vi
dual
,body
cor
por
ateoranassoci
ati
on.Thecompanyl
awdoesnotpr
escr
ibeanydi
squal
i
ficat
ion,
whi
chwoul
ddebaraper
sonf
rom becomi
ngashar
ehol
derofacompany
.

I
tappear
sthatanyper
sonwhoi
scompet
entt
oent
eri
ntoav
ali
dcont
ract(
aspert
he
Cont
ractAct
,1872)canbecomeamemberof
acompany
.Subscr
ibi
ngf
orshar
esi
sa
cont
ractbet
weent
hecompanyandt
heshar
ehol
der
.

HOW TOBECOMEASHAREHOLDER?
A cor
por
ati
oni
ssuesst
ockt
orepr
esentanowner
shi
pint
eresti
nthecompany
,for
maki
ngt
heownerashar
ehol
der
.Thi
sisacol
l
ect
ionofst
ockst
hatar
ebasedonsi
zeor
i
ndust
ryasameasur
eofhow t
heov
eral
linv
est
mentwor
ldper
for
med.Becomi
nga
shar
ehol
derwi
thanypubl
i
ccompanymeansbuy
ingt
hest
ockoft
hecompanywi
tht
he
hel
pofabr
oker
agef
ir
m.Ont
heot
herhand,becomi
ngashar
ehol
deri
napr
ivat
e
cor
por
ati
oni
nvol
vesdi
rect
lycont
act
ingt
hecompanywi
thanof
fert
oinv
est
.Toi
nvesti
n
compani
esandbeashar
ehol
deroft
hesamewewi
l
lshar
esomei
mpor
tantpoi
nts
whi
chwi
l
lgi
veusani
deaabout‘
howt
obecomeashar
ehol
derofacompany
’.

Ani
ndi
vi
dual
canbecomeacompanyshar
ehol
deri
nanyoft
hef
oll
owi
ngway
s:

Avail
ableat:
litt
Ds://
indi
anl
egalsol
uti
on.com/ i
ntr
oduct i
on-to-
comr )
anv4awAl astaccessedon: 11.10.2021
Avail
ableat:
litt
ps:/
/indi
anl
egalsol
uti
on.coi
n/int
roduction-t
o-companv -
law/.l
astaccessedon: 11.10.2021
Avail
ableat:htt
ps://
www. l
awteacher
.net/f
ree-l
aw-essays/business-
law/the-
member ship-company-act-of
-1956-
busi
ness-
law-
essav.
php#:~:text
=The%20member %20or %20shareholder%20of,t
he%20companv %20l
imited%20by%
20shares.
,l
astaccessedon: 11.10.
2021.

6|
Page
• Buy
ingSt
ocksFr
om Br
oker
ageFi
rms:Thebr
oker
agef
ir
msbuyandsel
lst
ocks
al
ongwi
thot
herf
inanci
ali
nst
rument
s.Thesef
ir
mshav
edi
ff
erentl
evel
sofser
vice
dependi
ngont
het
ypeofi
nfor
mat
ionandser
viceoneneedsf
rom t
hem.

• Ful
lSer
viceBr
oker
s:I
tal
ldependsupont
heneedoft
heser
vicer
equi
red.For
i
nst
ance,i
fani
ndi
vi
dualwant
stoi
nvesti
nacompany
,heneedst
ohi
reaf
ull
-ser
vice
br
okert
oanal
yzet
hecompani
esandgi
vemar
ketanal
ysi
sandknow ot
herdet
ail
sas
wel
l
.But
,ift
heshar
eisbei
ngpur
chasedf
oranyf
utur
eti
me,l
i
kef
orexampl
eforone’
s
gr
andchi
l
dren,t
henonecanaskf
ordi
scount
edi
nfor
mat
ionf
rom t
hef
ull
-ser
vicebr
oker
t
opr
ovi
deonl
yther
equi
redi
nfor
mat
ionwi
thoutdi
ggi
ngi
nthedet
ail
s.

• Ty
pesOfSt
ocks:Notal
lst
ocksar
ecr
eat
edequal
l
y.Ther
ear
ety
pesofst
ocks
t
hatt
hei
nvest
orneedst
obeawar
eof
.Af
tert
otalknowl
edgeoft
hest
ock,
hecani
nvest
i
nthecompanywi
thhi
sadequat
ety
peofst
ocks

• I
nvest
ingI
nPr
ivat
eCompani
es:I
nor
dert
obuyshar
esf
rom pr
ivat
ecompani
es,
t
her
eis a di
ff
erentpr
ocess al
toget
her
.Mostsmal
lbusi
nesses ar
ethese pr
ivat
e
cor
por
ati
onswhi
char
eowned byasmal
lgr
oup ofowner
sand i
nvest
ors.Pr
ivat
e
cor
por
ati
onsmanaget
hei
rst
ocksi
nal
edgert
hati
sbei
ngmai
ntai
nedbyt
heCor
por
ate
Secr
etar
y.

Ani
nter
est
edpar
tyneedst
ocal
lthesecr
etar
yort
hepr
esi
dent
,st
ati
nghi
sdesi
ret
obuy
i
ntot
hecompany
.Next
,heneedst
onegot
iat
ethepr
icepershar
eandnumberofshar
es.
The owner
s ar
erel
uct
antt
o gi
ve up a maj
ori
tyshar
ehol
dercont
rolso t
hatt
hei
r
owner
shi
pisnotatst
ake.

Oncet
henumberofshar
esandt
hei
rval
uei
sest
abl
i
shed,t
hepayi
sremi
tt
edt
othe
company
.Not
esar
ethenmadei
nthel
edgeroft
henewowner
shi
p,andapaperst
ock
cer
ti
fi
cat
eissi
gnedbyt
hepr
esi
dentandt
hecor
por
atesecr
etar
y,whi
chi
sbei
ngi
ssued
t
othenewshar
ehol
deraspr
oofofowner
shi
p.

• I
ncomeAndGr
owt
hSt
ocks:st
ocksar
eal
sodescr
ibedas"
growt
h,""
growt
hand
i
ncome"or"
income"st
ocks.Thi
shasmor
etodowi
thi
nvest
orobj
ect
ive.Acompany
seeki
ngt
ogr
ow i
nvest
sev
ery
thi
ngbacki
ntot
hecompanyandt
husdoesnotpayi
ts

7|
Page
owner
sanypr
ofi
ts.I
ncomecompani
esdopayt
hei
rowner
s.

Gr
owt
handi
ncomecompani
esbal
ancet
het
wo.Asashar
ehol
der
,youar
eanowner
andr
ecei
veadi
vi
dendf
rom ani
ncomeoragr
owt
handi
ncomest
ock.Thi
sisi
naddi
ti
on
t
oanyi
ncr
easei
nst
ockv
alueov
ert
ime.

New t
echnol
ogy compani
es ar
e of
ten seen as gr
owt
h compani
es,whi
l
e ut
il
it
y
compani
esar
eof
tenseenasi
ncomest
ocks.A companyl
i
keAppl
e,t
houghoncea
gr
owt
htechcompany
,nowmi
xeshi
ghdi
vi
dendswi
thr
einv
est
ment
,maki
ngi
tagr
owt
h
andi
ncomest
ock.

• Maki
ngThePur
chase:Af
tergoodanal
ysi
s,onecanbuyt
hest
ock.Thi
srequi
res
a"
buy
"or
der
.Thi
sisdone t
hrough t
he br
okerort
he onl
i
ne br
oker
age pl
atf
orm.
Gener
all
y,t
henewaccount
srequi
reami
nimum bal
ancet
oensur
ethatonecanpayt
he
pr
iceoft
hest
ockbef
orei
tspur
chase.

Af
tercal
cul
ati
ngt
hei
rownbudget
,onecanbuyt
hest
ock.Her
ethei
nvest
ori
srequi
red
t
oknowt
hemar
ketpr
iceoft
hest
ockandt
hecur
rentf
luct
uat
ingr
ate.

WHOMAYBEASHAREHOLDER?

Mi
nor

A mi
nori
snotqual
i
fiedt
oent
eri
ntoanagr
eementandt
husami
nor
’scont
racti
s
consi
der
edi
nval
i
d.A mi
norhasno l
egalabi
l
ityt
o ent
eri
nto abondoraut
hor
ize
someoneel
seonhi
sbehal
f.Howev
er,undert
heHi
nduLaw,t
heaccept
edguar
diani
s
per
mit
tedt
oent
eri
ntoabondonbehal
foft
hemi
norandsuchacont
ractwoul
dbe
obl
i
gat
ory
.Iti
sequal
l
yappl
i
cabl
eforsal
eandpur
chaseofapr
oper
ty.Hence,
aguar
dian
canent
eri
ntoashar
epur
chaset
ransact
iononbehal
fofami
norandt
hecont
ractwoul
d
bev
ali
d.

8|
Page
Company
:

Acompanycanbecomeashar
ehol
deri
nanot
hercompanysubj
ectt
otheappr
ovalof
t
heBoar
dofDi
rect
orsandpassi
ngofar
esol
uti
on.A sampl
eboar
dresol
uti
onf
or
pur
chaseofshar
esi
nanot
hercompanyi
spr
ovi
dedbel
ow:

“
RESOLVED THATt
heconsentoft
heBoar
dofDi
rect
orsoft
heCompanybeandi
s
her
ebyaccor
dedf
ormaki
ngani
nvest
mentnotexceedi
ngt
oRs.
___
___
___
___
_(Amount
i
nwor
ds)i
nthef
oll
owi
ngcompanyi
noneormor
etr
anches,andonsuchot
hert
erms
andcondi
ti
onsasmaybemut
ual
l
yagr
eedbet
weent
hebot
hpar
ti
es:

Nameoft
heCompany AmountofI
nvest
ment

“
FURTHERRESOLVED THAT(
Nameoft
heper
son(
s)aut
hor
ized)beandar
eher
eby
sev
eral
l
yaut
hor
izedt
odoal
lsuchact
s,deedsandt
hingsasmayber
equi
redt
ogi
ve
ef
fectt
othi
sresol
uti
on.
”

Tr
ust
:

At
rustwhi
chhasnotbeeni
ncor
por
atedcannotbet
reat
edasaper
son,henceshar
es
at
tai
nedbyat
rustcannotber
egi
ster
edi
nit
sname.Howev
er,i
tcoul
dber
egi
ster
edi
n
t
henamesofoneormor
etr
ust
ees.Howev
er,
shar
escanber
egi
ster
edi
nthenameofa
t
rustorco-
oper
ati
vesoci
ety
,ifi
tisr
egi
ster
ed.Hence,ar
egi
ster
edt
rustorco-
oper
ati
ve
soci
etycanbecomeashar
ehol
deri
nacompany
.

Li
mit
edLi
abi
li
tyPar
tner
shi
p:

AnLLPi
sal
awf
ulor
gani
zat
ionhol
dingasset
sandpr
oper
ti
esi
nit
sname.I
tcanbecome
ashar
ehol
derofacompanybyagr
eei
ngt
otheMemor
andum ofAssoci
ati
onoft
he
companyorbysubsequentpur
chaseofshar
esi
nthecompany
.

For
eignNat
ional
s:

Af
orei
gnnat
ional
,for
eigncompanyornon-
resi
dentI
ndi
ancanbecomeashar
ehol
derof
anI
ndi
ancompanysubj
ectt
oFor
eignDi
rectI
nvest
ment(
FDI
)regul
ati
onsandFEMA
gui
del
i
nes.

9|
Page
St
ateOrCent
ral
Gov
ernment
:

Anyoft
heSt
ateGov
ernment
sort
heCent
ralgov
ernmentcanbecomeashar
ehol
derof
acompanyt
hrought
hePr
esi
dentofI
ndi
aort
heGov
ernorofast
ate.TheActst
atest
hat
ei
therPr
esi
dentofI
ndi
aorGov
ernorofast
atecoul
dnomi
nat
eanyper
sont
obepr
esent
atanymeet
ingoft
hecompany
.Theper
sonsonomi
nat
edcoul
dbeconsi
der
edasa
shar
ehol
derofacompanyent
it
ledt
oexer
ciser
ight
sandpower
sint
hesamemanner
t
hePr
esi
dentofI
ndi
aorGov
ernoroft
heSt
atewoul
dhav
edi
schar
gedasashar
ehol
der
.

CEASI
NGTOBEASHAREHOLDER

Tr
ansf
er!

Whenacur
rentmembersel
l
sALLofhi
sshar
es,
a"mov
e"ofshar
eshappenst
owar
dsa
t
hir
dpar
ty.

For
fei
tur
eOfShar
es

Whent
hesai
dshar
esar
efor
fei
tedt
heshar
ehol
derceasest
obeamemberoft
he
company
.Hel
osesal
lhi
sri
ght
sandi
nter
est
sthatashar
ehol
dermi
ghtenj
oy.Andonce
hi
snamei
sremov
edf
rom t
her
egi
sterofshar
ehol
der
sheal
sol
ossesal
lthemoneyhe
hasal
readypai
dtowar
dst
heshar
ecapi
tal
.Suchmoneywi
l
lnotber
efunded.

Deat
h:

St
ocksandshar
escanbepassedont
onomi
neesbysubmi
tt
ingadeat
hcer
ti
fi
cat
ecopy
at
test
edbyanot
ary
/gazet
teof
fi
cer
.Thi
sfor
m mustber
egi
ster
edt
otheappr
opr
iat
e
cust
odi
ansuchasNSDLorCDSL.I
fnomi
nat
ioni
snotr
egi
ster
ed,
thehei
rsmustsubmi
t
ei
ther
:

1. Pr
obat
eofWi
l
l

2. Successi
onCer
ti
fi
cat
e

3. Let
ter
sofAdmi
nist
rat
ion

10|
Page
Bankr
upt
cy:

I
faper
sonbecomesbankr
upt
,undert
het
ermsoft
heBankr
upt
cyAct
,whi
chv
est
sthe
pr
oper
tyofabankr
upti
nhi
str
ust
eei
nbankr
upt
cy,
hisdi
vi
dendar
est
oppedcompl
etel
y,
Equi
tyget
swi
pedout,
Issuanceofnewshar
es,
Lossofmanagementr
ight
s.

Li
qui
dat
ionorWi
ndi
ngup:

Theconsequenceonshar
ehol
der
sandmember
s-i
facompanyhasl
i
mit
edshar
es,i
ts
shar
ehol
der
sar
eli
abl
etopayt
hef
ullamountupt
othei
rfacev
alue.Hei
snotf
reeofhi
s
obl
i
gat
ionev
eni
fthecompanyi
sli
qui
dat
ed.

BENEFI
TSOFBEI
NGASHAREHOLDER
Acompany
'sshar
ehol
derpossessmanypr
ivi
l
egesandt
heyar
ethesol
evoi
ceont
he
company
'saf
fai
rsandi
tsadmi
nist
rat
ion.Undert
hreeheads,t
hei
rpr
ivi
l
egesmaybe
gr
ouped.Bel
ow,
they
'r
edet
ail
ed:

• St
atut
oryRi
ght
s:Thesear
ether
ight
sconf
err
edupont
heshar
ehol
der
sbyt
he
Compani
esAct
.Someoft
hei
mpor
tantst
atut
oryr
ight
sar
egi
venbel
ow

i
. Ri
ghtt
orecei
venot
iceofmeet
ings,at
tend,t
otakepar
tint
hedi
scussi
onand
v
oteatt
hemeet
ings.

i
i
. Ri
ghtt
otr
ansf
ert
heshar
es,

i
i
i. Ri
ghtofpr
oxyt
ovot
ebyshowofhands

i
v. Ri
ghtt
oAppeal
agai
nstRef
usal
tor
egi
stert
ransf
erofshar
es.

v
. Ri
ghtt
opar
ti
cipat
einappoi
ntment
sofdi
rect
orsandaudi
tor
sint
heAnnual
Gener
alMeet
ings.

v
i. Ri
ght
stoappl
ytot
heGov
ernmentt
ocal
lannual
gener
almeet
ing.

v
ii
. Ri
ghtt
oDemandf
orPol
l
.

v
ii
i. Ri
ghtt
oconv
eneExt
raor
dinar
yGener
alMeet
ing.

11|
Page
• Document
aryRi
ght
s:Ther
ear
esomepr
ivi
l
eges,i
naddi
ti
ont
otheconst
it
uti
onal
r
ight
s,t
hatcanbegi
vent
oshar
ehol
der
sbyagr
eement
ssuchast
heMemor
andum and
t
heAr
ti
clesofAssoci
ati
on.

• LegalRi
ght
s:Such ar
ethe pr
ivi
l
eges pr
ovi
ded by t
he Common Law t
o
shar
ehol
der
.

LI
ABI
LITI
ESOFSHAREHOLDER
Ashar
ehol
derofacompanyl
i
mit
edbyshar
eshasl
i
mit
edl
i
abi
l
ity
.Thi
smeanst
hatt
he
shar
ehol
deri
snotl
i
abl
efort
heact
sandomi
ssi
onsoft
hecompany
.Thel
i
abi
l
ityoft
he
shar
ehol
deri
sli
mit
edt
othenomi
nalv
alueofi
tsshar
es.Thi
sisbecauset
hecompany
hasasepar
atel
egalper
sonal
i
tyt
otheshar
ehol
der
sand,t
her
efor
e,asepar
ateand
di
sti
nctl
i
abi
l
ityt
oanyi
ndi
vi
dual
sinv
olv
edi
nthecompany
.Thecor
por
atev
eilmayonl
y
bel
i
fted(
orpi
erced)byt
hecour
tst
oimposeper
sonall
i
abi
l
ityonshar
ehol
der
sin
except
ional
cir
cumst
ances.

¹Av
ail
abl
eat
:ht
tps:
//account
lear
ning.
com/
member
s-of
-a-
company
-meani
ng-
ri
ght
s-and-
dut
ies/
,Lastaccessedon:
11.
10.
2021

¹ Av
ail
abl
e at:ht
tps:
//www.
preser
vear
ti
cles.
com/
busi
ness/
how-
to-
become-
a-member
-of
-a-
company
-i
n-i
ndi
a/3495,l
astaccessed on:
11.
10.
2021

12|
Page
 CONCLUSI
ON
I
nthesmoot
hfunct
ioni
ngofacompany
,shar
ehol
der
spl
ayani
mpor
tantr
ole.Theyhav
e
v
ari
ousr
ight
swhi
chi
ncl
udet
heappoi
ntmentoft
hecompany
’sdi
rect
or,audi
tor
,to
v
oti
ngr
ight
sandhav
ingasaywhent
hecompanygoesi
nsol
vent
,ri
ghtt
oaccess
f
inanci
alr
ecor
ds,r
ightt
osuef
orwr
ongf
ulact
s,r
ightt
ovot
e,r
ightt
oat
tendt
heAGM,
andr
ightt
otr
ansf
erowner
shi
p.

Ri
ght
sanddut
iesat
tachedt
oashar
efol
l
owt
heshar
etoanyt
ransf
ereet
owhom i
tmay
bet
ransf
err
edandt
het
ransf
eri
ncl
udesal
lthepay
abl
eandunpai
ddi
vi
dendsand
di
vi
dendst
obepay
abl
e,aswel
las,ast
hecasemaybe,t
hecor
respondi
ngshar
eint
he
r
eser
vef
undsandpr
ovi
sions.Theowner
shi
pofashar
eshal
limpl
yipsof
act
othe
accept
anceoft
hepr
esentMemor
andum andAr
ti
clesofAssoci
ati
onandt
hedeci
sionof
t
hegener
almeet
ings.

Howev
er,t
heser
ight
smayv
arydependi
ngont
hecompany
’sshar
ehol
deragr
eement
andcompanyconst
it
uti
onandwi
thev
eryr
ight
,comesacor
respondi
ngr
esponsi
bil
i
ty
whi
cht
heshar
ehol
dermustcar
ryoutdi
l
igent
ly.Ther
eshoul
dbeapr
operbal
ance
bet
weent
het
wo.

13|
Page