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What is a member? - Coggle Diagram
What is a member?
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Subject to the restrictions contained in the Act, any natural person or corporate entity may be a member of a company
Companies are owned and controlled by their members, although managed on a day to day basis by their directors
The overwhelming majority of companies are private companies, limited by shares with the shares being held by the company's members
For companies with a share capital, there is a formal, transparent structure
Ownership and control are divided between the members according to the proportion of shares they hold
Guarantee companies also have a formal structure of ownership and control, although in a lot of cases not as transparent
Guarantee companies are a popular choice for membership organisations where the Articles are supplemented by internal by laws regulating how the organisation is run in general and specifically how directors are elected
Failure to write up the register of members even if a share certificate has been issued means that the shares have not been issued and the investor is not a member and does not have full title to the shares, this in turn will mean that any member resolutions that would have not been approved or defeated without the votes relating to those shares are not valid as the shares were not properly issued, they do not exist in law and have no voting rights