James Burden is considering buying shares in a company, Saturday Night Live Ltd (SNL). After purchasing 1,000 shares of SNL, James received a letter (via email) from the company secretary advising him of a forthcoming annual general meeting (AGM). As a new shareholder of SNL, James has plenty of questions to SNL's company secretary. James rings and asks SNL's company secretary to explain to him what is meant by the terms 'member' and 'shareholder', and the different ways in which a person may become a member. He also asks to explain who may be eligible to become a member, and how many members a company is permitted to have. Finally, James asks: how does a person cease to be a member of a company?

1. Pretend that you are the company secretary and provide advice to James regarding his questions above. Use relevant sections of the Corporations Act 2001 and/or case laws to support your answer (5 marks)