Justify the following statement:

Members of the company are entitled to several rights.

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1 Answers

  • Being an integral part of a company, members enjoy certain rights and have to fulfill the duties and liabilities.
  • Member has the right of accessing books and documents of a company. He can make copies of the Memorandum and Article of Association. He has the right to appoint Auditors and Directors and decide their salary and remuneration.
  • He can inspect the Register of Members and Debenture holders register.
  • He has right to make a Fundamental Corporate Decision like – Change of Registered office of the company, increase authorized capital, change in the object of the company, make amendment in Articles of Association, right of winding up the company, etc.
  • He has the right to receive the notice and agenda of a meeting. He can attend the Annual General Meeting in personal or he can send his proxy to attend the meeting.
  • Thus, I agree with the above statement.

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