Members object is the term given to any item that can only be used on a Members world. If you see one on a Free-to-play world, its name becomes "Members object" and it cannot be traded. If it is already equipped, the player can still have it equipped on the free world, but if it is removed it cannot be put back on until you are on a members world. All members objects have the same examine text: "Login to a members' server to use this object."
If members items are equipped that provide defence or attack bonuses, it loses them and becomes dead weight. In addition, weapons that are held in a certain way or have custom animations that act on the player model will not work, and all weapons will be held in a generic manner—similar to a basic sword—regardless of the weapon equipped.
Destroyable items such as the Barrelchest anchor, despite having the "drop" option, will still bring up a message asking if you want to destroy the item, and will act accordingly. You cannot drop trade members objects. They will just end up disappearing if they are on the ground for too long.