Subscriber to memorandum not a shareholder if amount unpaid

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)   (8229 Points)

23 February 2012  

Dear friends,

 

CLB Mumbai Bench in its order (copy attached) has held that a subscriber of Memorandum of Association of a company is not a shareholder if he has not paid subscripttion amount and accordingly he cannot file petition u/s 397-398 of Companies Act 1956.

 

Thanks