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difference

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)

07 April 2010

can any body tell me wht is the difference between share holder & member of the company. deeply & cleary

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5 Replies

Kaushik Vankadkar (Service) (350 Points)
Replied 08 April 2010

A member is the one whose name appears in the register of Members.

A member has to be a shareholder but a shareholder not neccessarily be a member

For eg: If you purchase a share of a company you have got a dilivery of shares but your name on that day didnot appear in the register of members maintained by the company. Then in such case he is a shareholder but not a member.

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CS Snehal (Compliance Manager) (346 Points)
Replied 08 April 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.

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 08 April 2010

Quite strange. However refer your PCC law book or any other good law book.

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27086 Points)
Replied 08 April 2010

"A member has to be a shareholder but a

shareholder not neccessarily be a member"

Raj Saxena (1412th Tiger) (Struggling Student) (272 Points)
Replied 08 April 2010

Originally posted by : Kaushik Vankadkar
	A member is the one whose name appears in the register of Members. A member has to be a shareholder but a shareholder not neccessarily be a member For eg: If you purchase a share of a company you have got a dilivery of shares but your name on that day didnot appear in the register of members maintained by the company. Then in such case he is a shareholder but not a member.