Justify the following statement: The insolvent person ceases to be a member of the company.

Yes, I agree with the statement.

• On, becoming insolvent, a person’s beneficial rights of shareholders passes to Official Receiver or Assignee. 
• Thus, the insolvent person stops being a member of the company on his insolvency. 
• Official Receiver is an officer appointed by the court, to deal with the property and assets of the insolvent person.
• On being insolvent a member ceases to be a member of the company and thus he can neither attend Annual General 
• Meeting nor can he vote on matters of the company. 
• Thus, I agree with the above statement.