a)Explain the proprietary rights of a member in a company. (b) Rita applied for 2,000 shares in Bidii Yako Company Ltd. following her application, no...

      

a)Explain the proprietary rights of a member in a company.

(b) Rita applied for 2,000 shares in Bidii Yako Company Ltd. following her application, no allotment at the time was made. Later on without her application, 2,000 shares were transferred to her and her name placed in the register of members.

Rita knowing that her name was in the register of members took no steps to have it rectified. Later on, the company collapsed. Rita was called upon to pay up on her shares and she has declined to do so arguing that she was not a member of Bidii Yako Company Ltd. She seeks your advice on the matter. Advise Rita

  

Answers


Martin
Proprietary rights of members fall two categories namely primary and secondary.
1. Primary rights include:
- Right to vote in company?s general meetings.
- Right to capital in the event of winding up. - Right to dividend if the same has been declared and become payable.

2.Secondary rights include
- Right to received notices of all general meetings of the company
- Right to receive copies of the memorandum and articles.
- Right to receive copies of the balance sheet laid before the company in general meeting.
- Right to inspect the various registers maintained by the company.
- Right to obtain copies of registers.
- Right to petition for the alternative remedy.
- Right to petition of the winding up of the company.
(
marto answered the question on February 6, 2019 at 10:21


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