Hi,
Can director age be less than 18? Do law anywhere puts this restriction on Director?
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 18 February 2008
Anjana Chugh
(Chartered Accountant)
(73 Points)
Replied 21 February 2008
Anjana Chugh
(Chartered Accountant)
(73 Points)
Replied 25 February 2008
Shweta
(Service)
(68 Points)
Replied 26 February 2008
Vidya
(Student of LAW)
(22 Points)
Replied 11 September 2009
Above replies are wrong.
The person below the age of 21 can not be appointed as director.
When the director gets appointed, he comes into the fiduciary duty of the company. And he handles the day to day functioning of the company,
As company is artifical person, it has to work through the directors only.
Let us check this question with simple example.
e.g.
In a company director places the order for 2 cup tea for the clients.
Now as he has ordered the tea. It will become the contract as the offer is also accepted later on.
Now, According to the contract act only the person above 21 can enter into the contract.
So, what has happened, when the director is below 21, Simple the contact becomes void.
Please bear in mind that in practical life every decision in company has not taken by way of resolution. Most of the decision has to be taken by the directors.
And for proper functioning of the company directors must have the power to enter into contract.
And If the director can not place a single order of tea, then how he would discharge his duty in the company.
Appointing a minor person in the company is like a giving a navigation system in the hands of a person who doesn't know how to sail. - Ankur Shah
Bear one thing in mind that accroding to the company law directors are appointed to navigate the company in the correct direction.
They are not appointed for the purpose of giving more and more salary to the promoters relatives and by that way reduce the tax liability of company.
Ankur Shah (Practicing Company Secretary)
“Guru Gautam” Bungalow, Inside Parshwa Tower,
Nr. Shyamal Cross Road, 132ft. Ring Road,
Satellite, Ahmedabad – 15
Contact: + 91-9427633901
E-mail: ankurjewel @ gmail.com
Blog: csankur.blogspot.com
NIDHI DHAWAN
(COMPANY SECRETARY)
(46 Points)
Replied 12 September 2009
Hi Ankur u are absolutely right ,but I want to correct u in regard to age of minor
The person below the age of 18 is minor and the person who has attained the age of 18 is major
but only in the case of TRANSFR OF PROPERTY ACT the age of major is 21
I have suggested the age of 21, because sometimes the directors has to purchase or sell the company's building, land, etc.
and
some companies are doing business of only real estate.
So, The age of 21 will be very safe.
Ankur Shah (Practicing Company Secretary)
“Guru Gautam” Bungalow, Inside Parshwa Tower,
Nr. Shyamal Cross Road, 132ft. Ring Road,
Satellite, Ahmedabad – 15
Contact: + 91-9427633901
E-mail: ankurjewel @ gmail.com
Blog: csankur.blogspot.com
ajay sharma
(Article)
(21 Points)
Replied 28 January 2011
hii
I just want to say that
A minor may be a director in a company, but only in pvt. company, not in public company becuse Accoding to sec 264 require consent of valid director. this sec applicable only on public company.
but on Din requirement their is a age clouse
but nither to say about that age must be more than 18 or 21.
so, in my opinion minor be a director not for resposibity.
cs ashwini kumar
(Company Secretary in Practice)
(173 Points)
Replied 28 January 2011
Hi everybody,
for becoming a director itself there is contract between that individual and the company (whether it's written by way of consent or otherwise) and for such appointment he/she must be a major (i.e. completed the age of 18 years).
Best Regard
CS Ashwini Kumar
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