B Com Exam > B Com Notes > Company Law > Difference b/w Members & Shareholders - Company Law
Difference b/w Members & Shareholders - Company Law | Company Law - B Com PDF Download
Difference between Members and Shareholders
The terms 'member' and 'shareholder' have been used interchangeably in the Companies Act. The word 'shareholder' is used in relation to a company having a share capital and there can be no membership except through the medium of shareholding. A holder of shares becomes a member only when his name is entered on the register of members. But the term 'member' is wider in scope and may be used in relation to all types of company. A person may become a member of a company without holding any shares. Companies limited by guarantee or unlimited companies having no share capital can have no shareholders but do have members.
The following are the points of distinction between members and shareholders :
- A holder of a share warrant is a shareholder but not a member as his name is struck off the register of members immediately after the issue of such share warrant.
- Every registered shareholder is a member but every registered member may not be a shareholder because the company may or may not have share capital.
- The transferor or the deceased person is a member so long as his name is on the register of members whereas he cannot be termed as shareholder.
- Similarly, a shareholder by transfer is not a member until his name is entered in the company's register of members.
- A person who mispresents himself to be a member is estopped from denying his position subsequently. He is said to have become a member by estoppel.
- A person may become a member by an order or decree of a court.
The document Difference b/w Members & Shareholders - Company Law | Company Law - B Com is a part of the B Com Course Company Law.
All you need of B Com at this link: B Com
|
81 docs|44 tests
|
FAQs on Difference b/w Members & Shareholders - Company Law - Company Law - B Com
| 1. What is the difference between members and shareholders in company law? |  |
Ans. In company law, the terms "members" and "shareholders" are often used interchangeably, but there is a subtle difference between the two. A member refers to any person who has agreed to become a member of the company and whose name is entered in the company's register of members. On the other hand, a shareholder is a specific type of member who holds shares in the company, representing ownership in the company. While all shareholders are members, not all members may be shareholders if they do not hold any shares.
| 2. What are the rights and responsibilities of members and shareholders in a company? | |
Ans. Both members and shareholders have certain rights and responsibilities in a company. As members, they have the right to participate in general meetings, vote on important matters, receive financial information, and inspect company records. Additionally, members have the responsibility to pay any amounts due on their shares and comply with the company's rules and regulations. Shareholders, being a specific type of member, also have additional rights like receiving dividends, the right to transfer their shares, and the right to receive a proportionate share in the company's assets upon liquidation.
| 3. Can a person be a member of a company without being a shareholder? | |
Ans. Yes, it is possible for a person to be a member of a company without being a shareholder. In some cases, individuals may become members of a company by contributing their skills, services, or expertise rather than investing capital and holding shares. These members are commonly known as non-equity members or non-shareholding members. They still have certain rights and responsibilities as members, but they do not hold any shares and therefore do not have the rights associated with shareholding.
| 4. Can a shareholder be a member of multiple companies? | |
Ans. Yes, a shareholder can be a member of multiple companies. There are no restrictions on a person holding shares in multiple companies simultaneously. Each company's shareholding is treated separately, and the rights and responsibilities associated with being a shareholder apply to each company individually. However, it is important for shareholders to carefully manage their investments and ensure compliance with any legal or regulatory requirements related to multiple shareholdings.
| 5. What happens if a member or shareholder fails to fulfill their obligations in a company? | |
Ans. If a member or shareholder fails to fulfill their obligations in a company, it can lead to various consequences. For example, if a member fails to pay the amounts due on their shares, the company may have the right to forfeit their shares, meaning the member loses their ownership rights. In cases of non-compliance with the company's rules or regulations, the company may take disciplinary actions, such as imposing fines or even removing the member from the register of members. It is essential for members and shareholders to understand and fulfill their obligations to maintain their rights and standing within the company.
Related Exams
About this Document
|
1.7K Views |
|
4.66/5 Rating |
|
Nov 22, 2024 Last updated |
Document Description: Difference b/w Members & Shareholders - Company Law for B Com 2024 is part of Company Law preparation.
The notes and questions for Difference b/w Members & Shareholders - Company Law have been prepared according to the B Com exam syllabus. Information about Difference b/w Members & Shareholders - Company Law covers topics
like and Difference b/w Members & Shareholders - Company Law Example, for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Difference b/w Members & Shareholders - Company Law.
Introduction of Difference b/w Members & Shareholders - Company Law in English is available as part of our Company Law
for B Com & Difference b/w Members & Shareholders - Company Law in Hindi for Company Law course.
Download more important topics related with notes, lectures and mock test series for B Com
Exam by signing up for free. B Com: Difference b/w Members & Shareholders - Company Law | Company Law - B Com
Description
Full syllabus notes, lecture & questions for Difference b/w Members & Shareholders - Company Law | Company Law - B Com - B Com | Plus excerises question with solution to help you revise complete syllabus for Company Law | Best notes, free PDF download
Information about Difference b/w Members & Shareholders - Company Law
In this doc you can find the meaning of Difference b/w Members & Shareholders - Company Law defined & explained in the simplest way possible. Besides explaining types of
Difference b/w Members & Shareholders - Company Law theory, EduRev gives you an ample number of questions to practice Difference b/w Members & Shareholders - Company Law tests, examples and also practice B Com
tests
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Summary
,Viva Questions
,Previous Year Questions with Solutions
,practice quizzes
,Objective type Questions
,Semester Notes
,Sample Paper
,Difference b/w Members & Shareholders - Company Law | Company Law - B Com
,Extra Questions
,Free
,mock tests for examination
,past year papers
,study material
,shortcuts and tricks
,Exam
,MCQs
,Difference b/w Members & Shareholders - Company Law | Company Law - B Com
,ppt
,Difference b/w Members & Shareholders - Company Law | Company Law - B Com
,video lectures
,Important questions
,
Additional Information about Difference b/w Members & Shareholders - Company Law for B Com Preparation
Difference b/w Members & Shareholders - Company Law Free PDF Download
The Difference b/w Members & Shareholders - Company Law is an invaluable resource that delves deep into the core of the B Com exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Difference b/w Members & Shareholders - Company Law now and kickstart your journey towards success in the B Com exam.
Importance of Difference b/w Members & Shareholders - Company Law
The importance of Difference b/w Members & Shareholders - Company Law cannot be overstated, especially for B Com aspirants.
This document holds the key to success in the B Com exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Difference b/w Members & Shareholders - Company Law Notes
Difference b/w Members & Shareholders - Company Law Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Difference b/w Members & Shareholders - Company Law.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Difference b/w Members & Shareholders - Company Law Notes on EduRev are your ultimate resource for success.
Difference b/w Members & Shareholders - Company Law B Com Questions
The "Difference b/w Members & Shareholders - Company Law B Com Questions" guide is a valuable resource for all aspiring students preparing for the
B Com exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Difference b/w Members & Shareholders - Company Law on the App
Students of B Com can study Difference b/w Members & Shareholders - Company Law alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Difference b/w Members & Shareholders - Company Law,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Difference b/w Members & Shareholders - Company Law is prepared as per the latest B Com syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup