Regarding this, what are the rights and liabilities of members of a company?
Right to transfer the shares [in case of public companies]. Right to receive copies of the Annual Accounts of the company. Right to inspect the documents of the company such as register of members, annual returns, etc. Right to participate in appointments of directors and auditors in the Annual General Meetings.
Secondly, in which clause liability of members is provided? The fourth clause of the memorandum is liability clause. This clause states the liability of the members of the company. In this clause the company must disclose whether the liability of the members is limited or unlimited. The liability may be limited by shares or by guarantee.
Furthermore, who has limited liability in a company?
A limited liability company (LLC) is a corporate structure in the United States whereby the owners are not personally liable for the company's debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
Who Cannot be a member of a company?
4/72 dated 09.03. 1972, a firm not being a person cannot be registered as a member of the Company. Such firm can be a member of section 8 company. In the case of partners, a firm as such cannot be registered as a member, but the partners in their individual names may be registered as joint holders of the shares.
