member v/s shareholder

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Ajit kumar

Ajit kumar (Querist)

15 December 2010 What is diff. Member and shareholder

CA Sanat Pyne

CA Sanat Pyne (Expert)

15 December 2010 Generally it is assumed that a person holding the shares of a company is a member of the same. But this perception is not actually correct. A person is called the member of a company if his name is included in the register of a company. A person remains the member of a company up to the time his name is not removed from the register of a company. However a shareholder means a company who is carrying the shares of that particular company. Various times it happens that the person carrying the shares of a company is not getting registered with the membership register of that company. In this particular case he is shareholder of a company but not the member of a company. In Case the share warrants are issued for the shares the holder will become share holders but not the member as his name is removed from the register of a company. A person is also become the member of a company by subscribing the memorandum of Association of the company. In this particular case if he does not obtains the shares of the company, he does not become the shareholder of the company but remains the member of the company.

Ajit kumar

Ajit kumar (Querist)

15 December 2010 thanks you Sir
it is helpful for me

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