Shareholder rights

The means of becoming a member of a company in Australia. Section 231 of a Corporations Act of 2001 sets out ways of becoming a member. In practical terms, there are several methods of becoming a member of a company.

With the member’s consent, being named in the application lodged with the ASIC’s 120 for registration. The member’s name must be entered in the register of members. Application and allotment.

This is the way in which memberships result from a contract with the company. The application is the offer and acceptance made by allotment, which is communicated to the offeree by a letter of allotment. Membership of the company does not occur until the allottee’s name is entered in the register of members.