In simple terms, the members of a company are its owners. All companies must have at least one member. A private or proprietary company cannot have more than 50 members that are not employees of the company. Public companies, those listed on the stock exchange, can have as many members are they wish.

1. What does it mean to be a ‘Member’ of an Australian
Proprietary Company?
In simple terms, the members of a company are its owners. All companies must have at least one
member. A private or proprietary company cannot have more than 50 members that are not employees
of the company. Public companies, those listed on the stock exchange, can have as many members are
they wish.
There’s no minimum age set out in Australian corporations law for becoming a member of a company
but there are certain ‘entities’ than can and cannot be members of a company according to the
Corporations Act 2001. A company’s constitution can also set a minimum age for membership.
According to the Corporations Act, the following can be company members:
1. A person
2. A body corporate
3. A body politic
A member must be “an entity that can own property, sue or be sued. That means the following cannot
be company members:
1. A business name
2. Estates and
3. Trusts
Estates and trusts need to nominate an executor or a trustee to hold shares in a company on their
behalf; they can’t hold them in their own right.
Even though a company is owned by its members, it still has its own separate legal existence and the
assets of a company belong to it, not to its members.
A company’s members are not liable for the debts of the company. A member’s only financial
commitment is to pay any amount to the company that’s unpaid on your shares it you’re required to do

2. so. Members may be required to contribute to the cost of winding up a company if it is not limited by
shares.
Members can make decisions about a company by passing resolutions. This is usually done at a meeting
of members.
For more information about Company Registration in Australia.