Members of companies

By:

James Knight

James is a lead editor for Invezz, where he covers topics from across the financial world, from the stock… read more.

Updated: Aug 20, 2021

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A person becomes a member of a company when his name is entered in its register of members. Subscribers to the memorandum of association become members automatically. Other persons are entitled to registration when allotted shares on application, or when shares are transferred to them. Strictly speaking, anyone whose name does not appear on the register is not entitled to the rights of membership. A court may order rectification of the register if a person’s name is wrongly omitted. On the other hand, entries in the register are not conclusive, and a person may have his name removed if it has been wrongly entered, though application to the court may be necessary first.

Reference: The Penguin Business Dictionary , 3rd edt.