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Money is an important factor of production and in economic parlance; money is the end product of a value chain. It is of the essence therefore to affirm that buying share requires funds, which customarily is within the prerogative of Investors, but the actual means of sharing of wealth from the profit made will depend on the common opinion of members. The next question on the mind of an investor who is willing to invest in an investment opportunity will be how to become a member of such Company which affords him or her opportunity to influence resolution and policies of the company.

In every Company, the subscribers to the memorandum and articles of association are deemed to be the first owners of the company. They are the pioneer members that laid the foundation of the economic growth witnessed within the years. They are automatically registered by the company secretary on the register of members. Investors that desires to partner with the owners of the company may apply through a written application, and if any member is desirous to off-set some or all of his or her shares, must signify the company secretary who will notify members of the company about the intent and desire of such member(s) to sell.   

It is important to note that as an investor, a shareholding contract is your only connection to the company which ensures that privity of contract is maintained, though CTC of form CAC 2A (particulars of shareholding) is a prima facie evidence of membership.

The agreement in writing which has been mentioned earlier must be in the following forms.

  1. Allotment of shares: This opportunity opens majorly during public offers when large numbers of share of the company are created to raise fund for enhanced ease of doing business. It was thought out for the purpose of raising money for the growth of the company.

Therefore in completing a form CAC 2A (particulars of shareholding) Section A must state the amount of shares created by the offer, then a compact disc or a flash drive being the most common electronic storage device will be used to collate the data of all persons who contributed to the growth of the Business of the company.

  • Transfer of shares: The best option available to an investor that wants to reap massive profit from a valuable investment option is to fashion out an opportunity  that will enable him or her  have prompt access to shares that has been privately placed for sell by Members which would invariably translate to participating in the sharing of the company’s profit. The foremost device that exhibits a complete transfer of shares is the share transfer instrument which needs not be compulsorily in a deed format.

Once both parties are done with the execution of the transfer instruments and it’s witnessed, the investor automatically becomes a member of the company and is entitled to all rights and responsibility accruable to members.

  • Transmission of shares: This method works by chance. An investor who is privy to the information that a prosperous company has been transmitted to someone without requisite business knowledge, will make heist to buy into the company by influencing a quantity of share to be sold to him or her so as to facilitate the growth of the Company.

Therefore, a wise approach to ensure that wealth is secured along family line by an investor is to adopt transmission of shares to offsprings. In that light, a will has to be made and updated timeously to ensure order in the Business after the demise of the investor

In conclusion, an investment in knowledge
pays the best interest. Any potential investor must ensure that prior to buying into his or her dream company, due diligent research is prepared in order to ensure that profit which is the end product of the investment drive is accomplished.

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