2

My wife and I are joint lessees of a flat within a block, in the UK. There is a management company responsible for managing the common areas within the block. The lease requires the lessee to apply to become a member of the management company. The management company is a private company limited by shares.

Question Is being a member of the company the same as being a shareholder, and if not what is the difference?

  • 1
    A shareholder normally has to purchase shares. Members do not.The rights of shareholders and of members should be set out in the Company's Memorandum and articles of association which are available from Companies House. – RedGrittyBrick Jul 13 '18 at 15:42
1

(Answering my own question following further research.)

Yes, for a UK company limited by shares, being a member and being a shareholder are one and the same. This is stated or implied by numerous websites including the following: 1st Formations Limited; Company Law Club; UK Business Forums; Inform Direct.

It's worth noting however that not all UK companies are limited by shares. Some, typically non-profit organisations, are limited by guarantee, having members but often no share capital and therefore no shareholders.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.