23 November 2011
hii frnds.. please tell me that can ' A minor be a MEMBER(not director) in a private limited company.. if posible plss quote the relevant sec or reference of another act. Regards Prateek
The Company Law Board held in Nandita Jain v. Bennett Coleman & Co. Ltd. that a minor applying (through her natural guardian) for being registered as a member of a company, was entitled to be so registered if the shares were fully paid up.
So a minor can be a shareholder through his/her guardian for fully paid shares.
To bring a case in this regard In Palaniappa vs. Official Liquidator, Pasupati Bank Limited, an application was made by a father as guardian of his minor daughter, it was held that since a minor is incompetent to contract he cannot become a member.
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