| Basis of comparison | Member | Shareholder |
| Meaning | A person whose name is entered in the register of members of a company, is the registered member of the company. | The person who owns the shares of the company is known as shareholder |
| Defined in | Section 2 (27) | Not defined |
| Share warrent | The holder of a share warrent is not a member. | The holder of a share warrent is a shareholder |
| Company | Every company must have a minimum number of shareholders | The company limited by shares can have shareholders. |
| Memorandum | The person who signs the memorandum of association it the company becomes a member | After signing the memorandum , a person can be a shareholder only the shares are allotted to him/ |