Minor be a member in pvt ltd co.

Save Share

This query is : Resolved

CA PRATEEK CHOUDHARY (Querist)
Follow

23 November 2011 hii frnds..
please tell me that can ' A minor be a MEMBER(not director) in a private limited company..
if posible plss quote the relevant sec or reference of another act.
Regards
Prateek

Charu Srivastava

Charu Srivastava (Expert)
Follow

23 November 2011 Yes Minor can be a Shareholder only through his guardian..

RG - A Helping Hand

RG - A Helping Hand (Expert)
Follow

23 November 2011 Agree with Expert

The Company Law Board held in Nandita Jain v. Bennett Coleman & Co. Ltd. that a minor applying (through her natural guardian) for being registered as a member of a company, was entitled to be so registered if the shares were fully paid up.

So a minor can be a shareholder through his/her guardian for fully paid shares.

Message likes : 1 times

CA PRATEEK CHOUDHARY

CA PRATEEK CHOUDHARY (Querist)
Follow

23 November 2011 thanx a lot frnds 4 ur valuable replies.. :-)..

Srirang Mahabhagwat

Srirang Mahabhagwat (Expert)
Follow

23 November 2011 Dear Experts,

To bring a case in this regard In Palaniappa vs. Official Liquidator, Pasupati Bank Limited, an application was made by a father as guardian of his minor daughter, it was held that since a minor is incompetent to contract he cannot become a member.

Wat say???

Mukta Suyal

Mukta Suyal (Expert)
Follow

23 November 2011 First of all you need to check the AOA of the Company, if AOA permits then only a minor can become the member of the Company.

And a minor can become member only of the fully paid shares and not of the party paid up shares.

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