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        Companies Law

        1933 (7) TMI 10 - HC - Companies Law

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        Membership cessation under notice-and-posting rule denied where posting is directory and register is presumptive proof. Whether the objector ceased to be a member under Article 19 turned on proof of the prescribed posting and notice procedure; the court treated the posting ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                              Membership cessation under notice-and-posting rule denied where posting is directory and register is presumptive proof.

                              Whether the objector ceased to be a member under Article 19 turned on proof of the prescribed posting and notice procedure; the court treated the posting requirement as directory and for the club's benefit, capable of waiver, and found no clear evidence the posting occurred. The members' register showing the objector's name on the winding-up date was accepted as presumptive proof that Article 19 procedure had not been followed and membership had not ceased. The objection to inclusion in the contributories list was therefore overruled.




                              Issues: Whether the objector (Mr. Ralli) had ceased to be a member of the company under Article 19 and therefore ought not to be included in the list of contributories.

                              Analysis: The Court examined the evidence that a notice demanding subscription was sent and that Article 19 contemplated posting the name of a defaulting member on the club's notice board, with cessation of membership following non-payment after specified periods. The Court found no clear proof that the club had effected the posting required by Article 19; the provision for posting was held to be directory rather than mandatory and for the club's benefit such that the club could waive it. The register of members showing the objector's name on the date of winding up was treated as presumptive proof that the procedure in Article 19 had not been followed and that membership had not ceased.

                              Conclusion: The objection is overruled and the objector's name has been rightly placed on the list of contributories; the claim that he ceased to be a member under Article 19 is rejected.


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