The termination or cessation of a membership can be undertaken pursuant to section 41 of the Companies Act, 1956, whereby the member may be expelled from membership. 1. Public Limited Company The concept of expulsion of a member of a company by the Board of Directors, pursuant to alteration of articles by special resolution [1] had been attended to by the erstwhile Department of Company Affairs (“ Department ”) vide Circular No. 32/75 [2] (“ Circular ”). The Department opined that [3] “ …….that amendment of articles of association of a company providing for expulsion of a member of the management is opposed to the fundamental principles of the company's jurisprudence and is ultra vires the company. The principles laid down by the Supreme Court in this case [4] , even though pertaining to the refusal of a company to the admission of a person as a member of the company, are applicable even with greater force to a case of expulsion of an existing member. …
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