Question 27 of 33
Q.Write any 2 differences between Member and Shareholder.
Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2025Subjective· 2mImportance★★★★★
82% · 27/33 Questions
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Start your 14-day free trial to unlock the full solution →Two differences: membership depends on entry in the register of members (shareholding on holding shares); and a company without share capital can have members but not shareholders.
| Basis | Member | Shareholder |
|---|---|---|
| How determined | A person becomes a member when his name is entered in the register of members. | A person becomes a shareholder by holding/acquiring shares of the company. |
| Register of members | A member's name must appear in the register of members. | A person may hold shares (e.g. a transferee whose transfer is not yet registered, or a holder of a bearer instrument) and still not be entered as a member. |
| Companies without share capital | A company limited by guarantee (having no share capital) has members. | Such a company has no shares, so it has no shareholders. |
| … |
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