applying for removal of his name under Section 155 of tIle Companies Act

Beneficial Owner in the Records of Depository [Sec. 41 (3). Every person who holds equity share capital of a company and whose name is entered as

beneficial owner in the records of the depository, shall be deeO).ed to be a member of the company. As the shares are handed over to the depository, the

name of the person is removed from the record of the company. However, h has all the right of a member including that of dividend, voting, bonus shares

etc.

Enumerate the different ways in which a person ceases to be a member of a company.

A person shall cease to be a member of a company when lis name is removed from the register of members for a valid reason. The name

of a member may be removed from the register of members under any of the following situations:

1. When he transfers his shares to another person and transferee’s name is registered in his place.

2. When the company forfeits his shares for non-payment of calls.

3. When he surrenders his shares to the company, if such surrender is permitted by the Articles.

4. When the shares registered in his name are transmitted to another person on account of his death, lunacy or insolvency and his name is

removed from the Register of Members.

5. When he rescinds the contract to purchase shares on the ground of mis-statements in the prospectus or on the ground of irregular allotment.

6. When the member holds redeemable preference shares, and slIch shares are redeemed by the company US 80.

7. When the company issues to him share warrants in exchange of fully paid-up shares.

8. When his shares are sold by the company in exercise of its right of lien over them by. giving 14 days’ notice

9. On the dissolution of the Company.

10. When he is declared insolvent and the official assignee disclaims the shares under his right of disclaimer of onerous property’.

11. By resorting to buy-back of own shares by the company US 77 A.

12. When a member is expelled from the membership in accordance with the provisions of the company’s articles. The associations registered as

company such as a Stock Exchange or Chamber of Commerce etc. generally provided for expulsion of a member for the acts which are detrimental to

the interest of the company (Naresh Chand Sanyal v:_. Calcutta Stock Exchange Association Ltd; AIR 1971 SC 422; Bajaj Auto Ltd. v.N.K. Firodia (1971)