Minor to be shareholder

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2012 Can a minor become shareholder of a private limited company even though he cannot enter into contracts?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 October 2012 Generally no.
But in special circumstances, can be.
eg :-In case the Nominee is a Minor, on death of the shareholder during the minority of the Nominee, the Shares should be transmitted to the Minor under the guardianship as mentioned in the nomination form till the Minor attains majority. However, the beneficial interest will be with the Minor.
Courtesy :- Secretarial standards of ICSI.