Can a minor be a director

According to Section 3 of the Indian Majority Act, 1785, a minor is a person who has not attained the age of eighteen years. The Indian Contract Act, 1872 prohibits a minor from entering into an agreement. However, nothing in this Act debars a minor from becoming a beneficiary or a promise under a contract. Section 253 of Companies Act, 1956 makes it compulsory that only an individual can be a Director. Hence, a minor, being an individual, may be appointed as a Director of a public Company. If the Articles of Association of the Company provides for qualification shares, the appointment of a minor as Director depends upon his acquisition of that much shares in the Company. Since a minor is incompetent to contract, a Company does not allot shares to a minor. However, he can obtain shares in the Company as a transferee of fully paid up shares from a shareholder of the Company. In such a case, the Company cannot refuse to accept such transfer and the minor shall become a shareholder of the Company (Miss. Nandita Jain v. Bennet Coleman & Co) and can be appointed as a Director of the Company. Section 408 of Companies Act, 1956 empowers Central Government to appoint any number of persons as directors of the Company who are not required to hold qualification shares. The Central Government may appoint a minor as Director. If the shares held by a minor are fully paid up, the minor will be entitled to vote at a General Meeting of the Company. Section 87(1) provides for any member of the Company, a right to vote on every resolution put before the meeting and his voting right on a poll shall be in proportion to his shares in the paid up capital of the Company. Minor and Companies Act, 1956 An application was made by a father as guardian of his minor daughter revealing her as a minor. The Company went into liquidation. It was held that, the transaction was void and the father who has signed the application for the minor could not be deemed to have contracted for the shares and could not be placed on the list of contributories. Palaniappa v. official liquidator, Pasupati bank Ltd (1942). If the directors, without knowing the fact of minority, allot shares to a minor in response to his application, and enter his name in the register of members,  The Company can repudiate the allotment and remove his name from the register of members on coming to know his minority.  The minor also repudiate during his minority. In either case, the Company must pay back all monies received from the minor in respect of the shares allotted to him. If neither party repudiates the allotment, the minor’s name remains on the register of members and he does not incur any liability during his minority. The minor can be a member to enjoy the benefits of members without being liable as a contributory. Fazalhboy Jaffer v. The Credit Bank of India (1914) After attaining majority, the minor, if he does not want to be a member, must repudiate his liability on the shares on ground of minority, and if he does so, the Company cannot plead estoppel on the ground that he received dividend during his minority or that he fraudulently misrepresented his age in his application for shares Sadique Ali v. Jai Kishori (1928) Source: https://aether-aether.blogspot.com/2012/01/whether-minor-can-be-director-of.html