There is a misconception about attainment of membership of any company (Co) and who a member is. Are you also in this situation? Majority of people perceive that a person who holds the shares of a company is a member. But this is not hundred percent true because a person may be a holder of shares but she is not a member.
A member is a person who has allowed his name to be listed in the membership register. You should be competent to enter into contracts in order to qualify for membership. Here are ways of acquiring membership:
1. Subscribers to the memorandum of association become original members of a company from the date of its incorporation. If you subscribe to it, then you become a member. You won’t be required to apply for allotment and entry of your name in the register of members. Register a company in the USA
2. If you agree to purchase qualified shares or be appointed as the first director of a public company, then you attain membership.
3. When you apply for shares and you are allotted the shares, then you can get your name listed in the register of membership. By getting your name on the register, you acquire membership.
4. Shares of a public company are freely transferable. When you purchase shares from a person in the open market and get them transferred to you through the execution of an instrument termed as share transfer form, then the transferors name is deleted from the register of membership and your name entered in it. This means that you acquired membership through transfer of shares.