https://www.taxtmi.com/caselaws?id=96575 A person who applies for shares, consents to act as a director, and is treated in the company records as a member may be bound as a shareholder and contributory, even if he later questions the transaction. The note states that the absence of a prospectus or objections to the mode of payment did not prevent completed membership where the surrounding correspondence and records showed assent. It also states that resolutions passed at a local board meeting and acts done by a de facto director could be protected by the statutory curative provision, so defects in appointment did not invalidate the allotment. A delayed denial of membership was treated as unavailable against the company in liquidation. en-us Fri, 01 Jan 1932 00:00:00 +0530 Mon, 09 Jan 2012 15:10:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96575 A person who applies for shares, consents to act as a director, and is treated in the company records as a member may be bound as a shareholder and contributory, even if he later questions the transaction. The note states that the absence of a prospectus or objections to the mode of payment did not prevent completed membership where the surrounding correspondence and records showed assent. It also states that resolutions passed at a local board meeting and acts done by a de facto director could be protected by the statutory curative provision, so defects in appointment did not invalidate the allotment. A delayed denial of membership was treated as unavailable against the company in liquidation. Case-Laws Companies Law Fri, 01 Jan 1932 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96575