As Nidhi Company can provide loans to its members and can also accept deposits from its members only in accordance with the requirements of Nidhi Rules. Nidhi Company is Public limited Company so at the time of formation of Company minimum seven members are required and as par requirements of Nidhi Rules and Companies Act, 2013 a Nidhi Company should have 200 members within 1 year from the date of incorporation. Now it is important that how members are added in the Nidhi Company so Nidhi can provide loans to its members and accept deposits to its members.
There are two ways through which members are added in the company:
#1. By way of allotment of new shares:
Nidhi Company may allot new shares to its members as par the provisions of the companies act, there is present exemption through which section of right issue and private placement is not applicable to Nidhi Company, so the shares can directly be allotted by Board Of Directors of the Company through a resolution passed. It is to be noted that no of shares allotted should not exceed authorized share capital of the Company.
#2. By way of transfer of shares of existing members :
As Nidhi company is a Public Limited Company , the shares of public limited company are freely transferable and existing shareholder of Nidhi Company may transfer his shares to another person , in this case he will also become member of nidhi company once his name is entered in the register of members.
Form for Transfer of shares : Form SH-4
