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Transfer of shares by minor

Sarvesh (Company Secretary) (179 Points)

21 December 2012

Dear Experts,

Please guide me whether shares held by minor can be transferred by way of gift to any other person. Please also let me know restrictions or prohibitions, if any in this regard under any law.

An early feedback will be highly appreciated.

Thanks in anticipation.

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4 Replies

nayan (article assistant) (466 Points)
Replied 21 December 2012

no , minor is neither capable of making the contract nor entering into the contract. he can be shareholder of fully paid shares in co and partner for profit in partnership. hope u got it

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purshotam vohra (CA IPCC) (138 Points)
Replied 21 December 2012

@ sarvesh

If those shares are fully paid up and there is no liability in respect of shares

Sarvesh (Company Secretary) (179 Points)
Replied 21 December 2012

Yes those shares are fully paid up shares.

Sarvesh (Company Secretary) (179 Points)
Replied 21 December 2012

As per my research on internet i would come to know that a parent or guardian cannot validly dispose of the property of a minor under guardianship without court approval. Is it really so? And if it is possible to transfer shares by court order then in this case will it be necessary to execute gift deed also. pls clarify.