Hi Preeti for this i would like to suggest you read sec.269,316 and scedule xiii of income tax act.You will be get a better understanding
In nutshell for your knowledge purpose any person who are less than 25 cannot become a director of a company,he can become a director of a company less than 25 for this they need to pass a resolution and take a prior approval of c.g but a person who is less than 18 he cant become a director in any case.
But still i suggest you read prov carefully because may be little bit i am wrong because i read this prov 4 yrs back when i was in my cs intermediate but sections are correct..age is also correct ..changes may be in te approval side
hi preeti i've found out from books dat companies actdoesn't state anywhere abt age or qualification of director................. but as sec-274 fo companies act deals wit qualification of directors dat also doesn't consider abt age............. but as i told earlier dat minor is not able to enter into contract so he cant b a director......... but dat was only a part............ d whole point is as every director of public company has to giv a written consent but nt in case of private company............. hence a minor can be a director of private company.
No age restrictions are mentioned in Companies Act (except for MD in Schedule XIII) for Directors. However as per Indian Contract Act, A minor cannot enter contract. He can not make contracts.
YES , a minor who has not attained the age of 18 years can become a Director of any Company, provided he is not subject to disqualification order pursuant to Company Directors Disqualification Act, 1986.
For Further Clarification, pls mail me on : encyclopediaofvidyasagar @ yahoo.com
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.
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.
