can a minor -under 18 year be a shareholder ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2011 Hi everybody,

My boss want to put his son, a minor 5 years old as share holder of Indian Private limited company. Is it possible ? And can his name will included in the board of director for voting of resolution ?

Thanks

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

03 February 2011 1) A minor can become a shareholder when the fully paid up shares are transferred or gifted to him or when the shares are passed on to him by way of transmission. However shares cannot be alloted to him directly as he cannot enter into a contract with the company.

2) A minor cannot become a director and vote in the Board resolutions.

Message likes : 1 times

Nikhil Kothari

Nikhil Kothari (Expert)
Follow

04 February 2011 As per general rule a minor cannot become a shareholder of a company but subject to exception he can become a shareholder of a company.

Exceptions :- Given by above expert.

No. A minor's name cannot be included in the board of director for voting of resolution.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now