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Difference between 'Shareholder' and 'Member' of a Company??

MCA / ROC Filings 19788 views 3 replies

What is the difference between 'Shareholder' and 'Member' of a Company??

Please consider all kinds of companies, and answer with a broad perspective.

Replies (3)

According to me there is no difference between a member and a shareholder of a company limited by shares.Shareholders are the members and vice versa.

Though the term member and shareholder are taken synonymously, there is a difference between the two. A person whose name is entered in the Register of members of a company is a member but a person holding the shares of the company whose name is not entered in the register of members (e.g., transferee pending registeration)  is a shareholder but not a member. Similarly, holder of stocks is shareholder but not a member since his name is removed from the Register of members on issue of stocks.

there is a clear difference between these two terms.  A person whoes name entered in the register of members( on a particular day) of a company is called as member. He may not hold shares on that day. Similarly a person my hold shares in a company but yet to get his name entered in the register of member. He may be called as shareholder but not as a member. ONLY a member may have right to attend the AGM, dividend entitlements, bonus shares, right shares etc and not a shareholder.


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