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Members object was the term given to any item that could only be used on a Members world. If you saw one on a Free-to-play world, its name became "Members object" and it could not be traded. If it was already equipped, the player would still have it equipped on the free world, but if it was removed it couldn't be put back on until you are on a members world. If member's items were equipped that provided defence or attack bonuses, it lost them and became dead weight. All members objects had the same examine text: "Login to a members' server to use this object."
Destroyable items such as the Barrelchest anchor, despite having the "drop" option, will still bring up a message asking if you want the item to get destroyed, and will perform accordingly.
You could not drop trade members objects. They would just end up disappearing if they were on the ground too long.