Prabeer (B. COM (H) CA & CS Final) (5484 Points)
13 December 2008What is the difference between 'Shareholder' and 'Member' of a Company??
Please consider all kinds of companies, and answer with a broad perspective.
bishwambhar nath thakur
(student)
(20 Points)
Replied 14 December 2008
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.
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 15 December 2008
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.
Arul Ganesh
(Company Secretary)
(98 Points)
Replied 29 December 2008
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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