Companies Act 2014 section 987

Membership of DAC limited by guarantee confined to shareholders

Section 987 clarifies that membership of a Designated Activity Company (DAC) limited by guarantee is restricted exclusively to those who are shareholders, either as original subscribers or as persons subsequently allotted shares.

• Only subscribers to the memorandum of association or persons subsequently allotted shares may be members of a DAC limited by guarantee
• A person must be entered on the register of members to qualify as a member
• No other category of person may hold membership, regardless of any other connection to the company
• This is an "avoidance of doubt" provision, meaning it confirms and clarifies the legal position rather than introducing a new rule