Generally, the members of a company are the shareholders. As per the provisions of section 231 of the Corporations Act 2001, they are:

 

·         Members of the company on its registration; and

·         every other person who agrees to become a member and whose name is entered on the register of members

 

Two conditions have to be met for a person to become a member:

 

·         A person cannot become member unless he agrees to do so.

·         The shareholder’s name must appear on the register of members. If his name has not yet been entered, he may be the beneficial owner of the shares concerned, but he is not entitled to the full rights of membership.

 

For example, a person may become entitled to the shares of another on the death, bankruptcy or insanity of a member. However, a person entitled to shares in these circumstances does not become a member simply because he is entitled to them. He is not a member until the change of ownership is formally registered and his name appears in the register of members.

 

Section 114 of Corporations Act 2001 permits either proprietorship or public limited companies to have just one shareholder (a single member company)