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This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 October 2011
what is the difference between shareholders and members of a company?
10 October 2011
Pl see certain distinctions given below:-
A person who subscribes to the memorandum of association immediately becomes the member even though no shares are allotted to him/her. In case shares are not allotted to the subscriber, he/she is a member but not shareholder of the company.
A person who acquires the shares in the open market may be a shareholder but he/she does not become the member automatically. It is only when the name of the transferee is entered in the register of members that he/she becomes the member. Until then he/she is just a shareholder and not a member.
In case of company limited by guarantee having no share capital or unlimited company having no share capital there will be only members and no shareholders.
Holder of a share warrant is a shareholder of the company but not a member as his /her name is struck off the register of members.
A person who subscribes to the memorandum of association immediately becomes the member even though no shares are allotted to him/her. In case shares are not allotted to the subscriber, he/she is a member but not shareholder of the company.
A person who acquires the shares in the open market may be a shareholder but he/she does not become the member automatically. It is only when the name of the transferee is entered in the register of members that he/she becomes the member. Until then he/she is just a shareholder and not a member.
In case of company limited by guarantee having no share capital or unlimited company having no share capital there will be only members and no shareholders.
Holder of a share warrant is a shareholder of the company but not a member as his /her name is struck off the register of members.
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