Capacity To Become A Member

Flashcards covering the legal capacity and disqualifications for company membership under CAMA 2020.

Who are the three categories of people disqualified from being members of a company?

Undischarged bankrupts, companies in liquidation, and persons of unsound mind.

What is the age definition of an infant according to Section $20$ and Section $106$ of the CAMA?

An infant is a person below the age of $18$ years.

Can an infant be a member of a sole membership company?

No, an infant cannot be a member of a sole membership company.

Under what condition can an infant become a member of a company?

An infant can become a member if there are two or more adults who are not disqualified from becoming members of the company.

When determining the legal minimum number of members for a company, should minors be counted?

No, a person under $18$ years shall not be counted for determining the legal minimum of members; only the adults are counted.

How is the membership of a deceased shareholder handled according to the transcript?

The shares are transmitted to his personal representative, such as executors or administrators.

According to Section $173$ of CAMA, what is considered sufficient evidence to grant a deceased member's shares to a personal representative?

The production of the probate of the will or letters of administration of the estate of the deceased member.

How does a company that has become a member of another company attend its meetings?

By a representative authorized by a resolution of its directors, according to Section $255$ of CAMA.

According to Section $20$ sub $3$ of the CAMA, can a company in liquidation become a member of another company?

No, a company in liquidation is not capable of becoming a member of another company.

What are the requirements for a person to be considered a member of a company?

A person who has subscribed to the memorandum of the company, agreed in writing to become a member, and whose name is entered in the register of members.

When does a shareholder of a company having a share capital officially become a member?

When his name is entered in the register of members.