"In a company limited by shares all members will ordinarily be the shareholders but all shareholders need not be the members, ipso facto." Differentiate between 'members' and 'shareholders' considering the provisions of

Difference between the Member and the Shareholder Sr.No. Member Shareholder 1 Section 2(55) of the Companies Act, 2013 specifies the meaning of 'member'. On the other hand, the meaning of 'shareholder' is not defined under the Companies Act, 2013 2 A shareholder becomes a member of a company, once his name is entered into the company's register of members or if he is a subscriber to the incorporation of the company. Every other person who agrees in writing to become a member of the company and whose name is entered in its register of members shall, be a member of the company. The person who has ownership of shares of a company is known as shareholder. Further, companies limited by guarantee do not have a share capital, and consequently, their members are not shareholders. 3 The subscribers to the Memorandum of a company who shall be deemed to have agreed to become members of the company, and on its registration, shall be entered as members in its register of members. The person who signs the memorandum of association with the company becomes a member. After signing the memorandum, a person may become shareholder only when the shares are allotted to him. 4 The bearer of a share warrant is not a Member. Whereas, the holder of a share warrant is a Shareholder. 5 A member who has transferred his shares, though he does not hold any shares yet he continues to be member of the company until the transfer is registered and his name is removed from the register of members maintained by the company. Similarly, A person may be a holder of share by transfer but will not become its member until the transfer is registered in the books of the company in his favour and his name is entered in the register of members.