Question 19 of 33
Q.Differentiate between member and shareholder.
Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2022Subjective· 3mImportance★★★★★
58% · 19/33 Questions
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Start your 14-day free trial to unlock the full solution →A member is one whose name is entered in the register of members; a shareholder is one who holds the shares — the two usually coincide but not always.
| Basis | Member | Shareholder |
|---|---|---|
| Meaning | A person whose name is entered in the company's register of members | A person who holds/owns shares of the company |
| How status arises | By agreeing to be a member and having the name recorded in the register of members | By acquiring/holding shares of the company |
| Register | Membership depends on entry in the register of members | Merely holding a share certificate does not by itself make one a member until registered |
| Company without share capital | Such a company (e.g., a company limited by guarantee) has members | It has no shareholders, as there are no shares |
| Bearer instrument | A holder of a bearer instrument is not a member (not on the register) | Such a holder may be treated as holding the security without being a registered member |
| Transferee before registration | Is not yet a member until the transfer is registered | May already be the owner/holder of the shares |
| … |
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