THE SEPARATION OF INVESTMENT AND MANAGEMENT.
In a public limited company, the only investors who may engage in management are the directors. These are those shareholders to whom the power of management has been delegated by the body of shareholders.
a. The acquisition of membership: Membership may be obtained by various methods-applying for a new issue of shares; purchasing from a present accepting of gift or bequest, etc-but it must be a voluntary action. For
instance, a person may not be a member against his will and a person whose name appears in a company’s register of members without his consent may take action to have it removed.
b. Subject to company regulation: Having acquired membership a person is bound by the regulations of the company. Application to be registered as the holder of shares includes a commitment to be so bound.
c. Voting power: Shareholders may give a member the right to vote at company meetings but there is not automatic legal right to a vote. The extent of any voting (usually one vote per share) is specified in the terms of issue and in the company’s regulations.