12.8.6 (Termination of Membership)

A person may cease to be a member of a

Company when:

            (i) he transfers his shares to another person and the shares are registered in the name of the transferee;

            (ii) his shares are forfeited by the company for non-payment of calls;
           
            (iii) he surrenders his shares to the company and the latter accepts the
surrender;

            (iv) his shares are sold by the company to enforce its lien and the buyer of these shares is registered as a member;

            (v) he dies and his legal representative gets his own name registered in the register of members or sells shares to a party who gets his name registered with the company;

            (vi) he is adjudged insolvent and the Official Receiver/Official Assignee either transfers the shares to a third party who gets registered as a member or disclaims shares;

            (vii) he was holder of redeemable preference shares which have now been redeemed by the company;

            (viii) he rescinds the contract of membership on the ground of fraud or misrepresentation;

            (ix) his shares are purchased either by another member of the company or by the company itself by an order of a Court under s.402;

            (x) he has got share warrants issued in exchange for share certificates of fully paid up shares; and

            (xi) on the commencement of winding up (but he will be liable as a contributory and is also entitled to a share in the surplus assets, if any).

As mentioned earlier, a company may be member of another company. In such a situation if the shareholding company is being wound up then the membership will come to an end if the Liquidator disclaims the shares.