Termination of the membership can take place in two ways:
1. Voluntary termination (by act of the parties)
2. Compulsory termination (by operation of law)
1. Voluntary/by act of the parties termination: A person ceases to be a member of a company by doing the following act:
• By transfer of shares
• By forfeiture of shares
• By surrender of shares
• By exercising lien by the company.
• By issue of share warrants
• By redemption of shares
• By the buy back of shares by the company
• By irregularity in allotment
• By repudiating the contract on the ground of false or misleading statement in the prospectus of the company.
2. Compulsory/By operation of law termination: A person ceases to be a member by operation of law in the following cases:
• By termination of shares
• By insolvency of the person
• By the order of court on acquiring shares
• On winding up of a company
• On the death of the person