Basis of difference Shareholder Members

Meaning A person whose name is The person who owns the

entered in the register of
members of a company, is the
registered member of the
company.
Defined in Section 2 (55)
Share Warrant The holder of a share warrant is The holder of a share
not a member
Company Every company must have a
minimum number of members.
Memorandum The person who signs the
memorandum of association
with the company becomes a
member.
shares of a company is
known as a shareholder.
Not defined
warrant is a shareholder.
The company limited by
shares can have
shareholders.
After signing the
memorandum, a person can
be a shareholder only when
the shares are allotted to
him.

How to become the member of a company

● If a person subscribes to the memorandum of association of a

company, he becomes a member by signing it.
● If a person becomes the beneficial owner of shares whose name is
registered in the record of the depository, then also he becomes a
member.
● If a person gets shares by way of transfer and the transfer is recorded
by the company, along with the entry of the name of the transferee in
the register of members.
● If a person gets shares by way of transmission and the transmission
is recorded by the company along with the entry of the name in the
register of members.
● If a person agrees to take the qualification shares of the company
and pay for it then also he becomes a member of the company.
The following are the rights of a shareholder:

● Right to transfer or sell their shares.

● Right to get the dividend.
● Right to attend the general meeting and vote.
● Right to take copies of Memorandum and Articles of Association.
● Right to receive the copy of the statutory report.