As per Section 9 of Indian Companies Act 2013 after registration the subscribers will become members and will be capable of exercising all functions of the incorporated company. Provision in the Indian Companies Act 2013 regarding Effect of Registration is as under.
From the date of incorporation mentioned in the certificate of incorporation, such subscribers to the memorandum and all other persons, as may, from time to time, become members of the company, shall be a body corporate by the name contained in the memorandum, capable of exercising all the functions of an incorporated company under this Act and having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable, tangible and intangible, to contract and to sue and be sued, by the said name.
As per Section 10 of Indian Companies Act 2013 after registration the memorandum and articles will be binding on members. Provision in the Indian Companies Act 2013 regarding Effect of Memorandum and Articles is as under.
(1) Subject to the provisions of this Act, the memorandum and articles shall, when registered, bind the company and the members thereof to the same extent as if they respectively had been signed by the company and by each member, and contained covenants on its and his part to observe all the provisions of the memorandum and of the articles.
(2) All monies payable by any member to the company under the memorandum or articles shall be a debt due from him to the company.