Chapter 8 - Membership

Question 1

What is a member of a company?

Answer 1

A person whose name is entered in the register of members. Members are the owners of the company and exercise control through voting rights.

Question 2

How is a membership aquired?

Answer 2

By subscribing to the memorandum, agreeing to become a member, or acquiring shares and being entered into the register of members.

Question 3

What is the register of members?

Answer 3

A statutory register that records the names and details of all members. It must be kept at the company’s registered office or inspection location.

Question 4

What are the transparency requirements for members?

Answer 4

Companies must maintain a register of people with significant control (PSC) and disclose this information to Companies House.

Question 5

How can membership be terminated?

Answer 5

Through transfer of shares, forfeiture, death or redemption of shares.

Question 6

Quick hit
Member

Answer 6

A person entered in the register of members

Question 7

Quick hit
Register of members

Answer 7

Official record of all company members.

Question 8

Quick hit
PSC Register

Answer 8

Register of people with significant control over the company.

Question 9

Quick hit
Termination of Membership

Answer 9

Occurs via share transfer, death or redemption.

Question 10

Quick hit
s. 112 CA 2006

Answer 10

Defines who is a member of a company.