Maximum number of shareholders of Private Company

[ciapk]

How may shareholders a Private Company could have at maximum? as there is a slight difference between shareholder and member. Is there any reference?

[awaisaftab]

What is difference between member and shareholder in your opinion?

[Abuzar Qazi]

Firstly, I would like to ask what sort of difference do you see between the shareholder and a member.....?As all the criteria of becoming a member as mentioned under section 2(21) is associated with having a share in the company......So accordingly maximum number of members for r private company is 50 excluding the employee members and a joint shareholder shall be treated as a single member For further clarification see sub section 28 of section 2

[ciapk]

Holder of a share will not be treated as a member of the company unless his name is entered in the register of members so he is a shareholder but not the member. e.g in case of transmission, officail assignee of insolvent may become a shareholder by order of the court but he could not attend meeting merely upon having share certificate unless he send the shares along with court order to register the share in his name.

As abuzar said joint shareholders are more than one persons but will be counted a single member it seems that there is difference between shareholders and members. So how many person can hold a share jointly? if two then there should be 100 shareholders but 50 members for private limited company?

[awaisaftab]

CO uses the words "Fifty Members" in sub section 28 of section 2.

[ciapk]

Maximum How many persons can get one share jointly?

[Abuzar Qazi]

There are no specific guidelines as to how many persons could hold the shares jointly and there is little concern about this as the maximum number of members is 50 and the joint shareholders are treated as a one for this 50 limit.....Shares acquired through transfer or transmission no doubt gives the person a shareholding in that private company but he will be a shareholder in his personal capacity but not in the sight of a company unless he gets his name registered with a company and the moment his name is entered he becomes a member. If not, all the notices and dividends would be declared in the name of the previous shareholder(member)registered with the company even though the that new person is the current shareholder.......In short a person is a shareholder in the sight of a company when he is registered with a company and a registered shareholder is a member........ hope the answer of your question

[ciapk]

Yes, i have learned from some book that maximum 4 ppl can hold one share jointly but there is no any reference given there. any body knows?