Status of Minor in Comapnies Act or Other in other Law

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Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2010 Dear All,

Can anybody explian me the status of Minor in Companies Act, 1956 and in other law..?

Ankur Garg

Ankur Garg (Expert)
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03 December 2010 Minor can not become shareholder of a company. However he can be a transferee of fully paid shares.

As per Indian laws Minor is not eligible to enter into a contract or he in considered as incompetent to enter into a contract.

Regards

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Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2010 then sir whose is to be mention in register of memebers.
can we mention minor name or their gurdian?

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Ankur Garg

Ankur Garg (Expert)
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03 December 2010 See allotment to minor is recognised in law by one way...

You may allot the shares in the name of guardian on behalf of minor.

You may use the following way to enter name in register...

Vadana Gupta (Acting through her Guardian Ms. Anu Gupta)

Regards

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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03 December 2010 A minor can 't become the shareholder of the company nor share can be transfer in his name .

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 December 2010 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.

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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04 December 2010

Dear Warrier sir
But in that case also the name of minor will not be in the register or index of shareholder , plz comment .