3.4 CESSATION OF MEMBERSHIP
- Transfer of shares
The transfer may be voluntary, such as selling the shares to a third party, or involuntary, such as transferring shares through inheritance or court order.
- Share buyback
Companies may have the authority to buy back shares from their members.
- Redemption of shares
In certain cases, a company may have the power to redeem shares, meaning the company repurchases the shares from the member at a predetermined price or according to specific conditions.
- Share forfeiture
If a member fails to comply with certain obligations or breaches the company’s rules, the company may have the right to forfeit their shares.
- Resignation
Members can voluntarily resign from their membership in a company by submitting a resignation letter or notice to the company.
- Death or bankruptcy
The death or bankruptcy of a member usually results in the cessation of their membership.
- Termination or dissolution
If a company is terminated or dissolved, the membership of all its members ceases automatically.