Comment on the following: Every shareholder of a company is known as member while every member may not be known as shareholder.

A company is composed of members, though it has its own separate legal entity. The members of the company are the persons who constitute the company as a corporate entity. In the case of a company limited by shares, the shareholders are the members. The terms "members" and "shareholders" are usually used interchangeably being synonymous, as there can be no membership except through the medium of shareholding. Thus, generally speaking every shareholder is a member and every member is a shareholder. However, there may be exceptions to this statement, e.g.: A person may be a holder of share(s) by transfer but will not become its member until the transfer is registered in the books of the company in his favor and his name is entered in the register of members. Similarly, a member who has transferred his shares, though he does not hold any shares yet he continues to be a member of the company until the transfer is registered and his name is removed from the register of members maintained by the company under Section 88 of the Companies Act, 2013 . A member is a person who has subscribed to the memorandum of association of the company. A shareholder is a person who owns the shares of the company. The bearer of a share warrant is not a member, but the bearer of a share warrant can be a shareholder.