How to become a member of a NIDHI Company
One of the principal criteria of Nidhi Company is that it can just work with its members
To be a member of a Nidhi Company, one share must be given to him. In any case, on the off chance that if the part needs to have a common or fixed store, the quantity of offers will be 10. Below is the procedure to become a member of a NIDHI Company.
- Choose and divide shares – Choose any one person shares and divide them into small share certificates equivalent to either one share or ten shares depending upon the need.
- Attach the share certificate with FORM SH – 4 – Form SH – 4 is being used to give effect to the share transfer. Attach the FORM SH – 4 with share certificates.
- Attach along with Membership Form – The Form SH 4 and Share certificates are now to be attached with the membership form. Now suppose any person visit the office to deposit 10,000 Rupees. Then he must be given the membership form to fill, and after that, the transfer procedure should be conducted by filling necessary details on share certificates and form SH – 4.
- Hand over the share certificate to him – Once proper due diligence has been done in respect to share transfer, the proper set of documents should be handed over to the applicant. The company must retain a copy of those documents.
- Pass board resolution for each entry – The board resolution must be passed at the end of the month validating the share transfer happened during the month.
- Enter details in Share Transfer Register – Once share transfer has taken place, the required details must be entered in share transfer register.