COMPANY LAW -MEMBER & SHAREHOLDER

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RAKESH (Querist)
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29 September 2021 Dear Sir ,

I want to ask member and shareholder are the same term . we can use this words interchangeably . Secondly- COmapany can take loan or give loan to outsider .

REgards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 September 2021 Member:

A member is a person who subscribed the memorandum of the company[at the time of incorporation and thereafter by subscribing equity shares].

The term member is defined under section 2 (55) of the Companies Act, 2013.

The bearer of a share warrant is not a member.

All shareholders whose name are entered in the register of members are the members.

In the case of a public company, there must be a minimum of 7 members. There is no such cap on the maximum number of members. Similarly, a private company can have a minimum of 2 and maximum of 200 members.

Shareholder:

A shareholder is a person who owns the shares of the company.

The bearer of a share warrant is can be a shareholder.

all members may not be the shareholders.

RAKESH

RAKESH (Querist)
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29 September 2021 Sir, Share holder cannot become a member unless their name is entered in the register of member . but one can become member without acquiring the shares of pvt ltd co.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 September 2021 Agreed ... I didn't say any thing contrary to that..

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