Difference between members and shareholders

MEMBERS AND SHAREHOLDERS


The ‘members’ or ‘shareholders’ of a company are the persons who entity collectivity constitute the company as a corporate entity. The terms member and shareholder and ‘holder’ of a share are used interchangeable.


DIFFERENCE BETWEEN MEMBERS AND SHAREHOLDERS

1.a registered shareholder is a member but a registered member may not be a shareholder because the company may not have a share capital.

2.a person who owns a bearer share warrant is a shareholder but he is not a member as his name is struck off the register of members. This means that a persons can be holder of shares without being a member.

3.a legal representative of a deceased member is not a member until he applies for registration. He is however, ashareholder even though his name does not appear in the register of members