Underlining imp words in LAW... please help !!

First thing i must say, Don't use pencil or pen other than blue or black for highlighting purpose. These are totally restricted in examination for using any highlighter, Pen other than blue and black and pencil (pencil can be use for making graphical presentation). For more clearance see the information provided with Admit card.

For underlining facts, we should always kept in mind, what do you want to show to examiner, that examiner can judge our knowlege, even without reading whole answer. Besides other things case laws, sections and definitions may be the fact that should be underlined.

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The companies Act, 1956 does not lays down a qualification for membership. An agreement enforceable in a court of law makes important the membership.

        Therefore, the contractual capacity stated by the Indian contract act, 1872 should be taken into consideration. It was held in the case of Mohri Bibi Vs. Dharmadas Ghose that sice the minor does not have contractual capacity, thus, agreement with minor will be void. Therefore, a lunatic or minor cannot enter into an agreement to become the member of the company. Further, in the case of Diwan Singh Vs. Minerva Films Ltd., the Punjab High Court held that there is no legal restriction on a minor becoming the member of a company by  taking up the shares by way of transfer provided the shares are fully paid up and no obligation should be related to it.

        In view of the above case, M/s. Honest Cycle Ltd. can give membership to Balak through 1000 shares, received by way of transfer in favour of Mr. Balak a minor because the shares are fully paid up and no further obligation or liability is attached to these

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By above underlined facts, an examiner can easily judge that the said case is related to Indian contract act 1872, in which relevant case laws are Mohri Bibi Vs. Dharmadas Ghose and Diwan Singh Vs. Minerva Films Ltd.,  and you can also underline some little and important facts about the same. However it depends on our own prudence, what we want to show effectively in our answer.

Best of luck

Thanks Krishna

Thanks a lot