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SH & members
Corporate & Other Laws
What is the difference between shareholders and members?
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Best Answer
Chandu vadla
For what
refer section 2(55) of companied act https://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf
Chandu vadla
shareholders includes both Preference shareholders as well as Equity shareholders. Members includes only Equity share holders.
So are you saying that all equity shareholders are members? So of today i buy an equity share of reliance, will i become the member of reliance?
Chandu vadla
For what
I have heard that all shareholders are not members of the company I just forgot who a member was. That's why I asked I guess all the shareholder whose name is there in registrar of members is a member of the company
Sriram Somayajula Admin
refer section 2(55) of companied act https://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf
Ohh.. Thankuu so much sir... I got it.. ^_^
Thread Starter
Christeena AmbelI have heard that all shareholders are not members of the company I just forgot who a member was. That's why I asked I guess all the shareholder whose name is there in registrar of members is a member of the company
yes, The holder of the share warrant is also a Shareholder, but the holder of the share warrant is not a member.
I think in 3 cases member and share holder is different 1) subscriber to memorandam is a member even he is not holding a single share 2) guarantee company.....no shareholders will be there....only members will be there 3) in case if transfer deed is pending registration with company, registered owner is no more a share holder because, the share certificate will be transferred to transferre......still his name will be be there in register of members.... Hence he is still a member. ....if I am wrong please correct me.
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