Minor shareholder

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2014 In a Private Company there are 2 Directors, out of which one is minor.

Can Minor shareholder attend General Meeting?
can he caste vote?
will his presence will be counted for ascertaining quorum.?

Sandeep Dharar

Sandeep Dharar (Expert)
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22 April 2014 Yes he can attend GM, but has no voting power.

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2014 In a Private Company there are 2 Directors, out of which one is minor.

Can Minor shareholder attend General Meeting? can he caste vote?
will his presence will be counted for ascertaining quorum.?

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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03 August 2024 Here's a detailed look at the role and rights of a minor shareholder in a private company, especially concerning attending general meetings, casting votes, and quorum:

### **1. Attendance at General Meetings:**

- **Can a Minor Shareholder Attend?**
- **Yes, a minor shareholder can attend a general meeting of the company.** While minors cannot enter into contracts or legal agreements, they can attend meetings. However, the minor cannot vote or make decisions as their ability to contract is restricted.

### **2. Casting Vote:**

- **Can a Minor Shareholder Cast a Vote?**
- **No, a minor shareholder cannot cast a vote.** Since a minor cannot legally enter into binding agreements or contracts, their vote in a general meeting would not be valid. In practice, the minor's voting rights are exercised by a guardian or representative who can act on their behalf. This is typically addressed through a **guardian or legal representative**, who will cast the vote in their stead.

### **3. Quorum:**

- **Will the Minor’s Presence Count for Quorum?**
- **Yes, the minor’s presence is counted for determining the quorum of the meeting.** According to the Companies Act, the quorum for a general meeting is determined by the number of shareholders present, regardless of their age. However, while the minor’s presence helps in achieving the quorum, the minor cannot participate in decision-making processes.

### **Additional Notes:**

- **Representation by Guardian:**
- **In practical scenarios,** if a minor shareholder is involved, their legal guardian or representative should attend and act on their behalf, especially for any decision-making, voting, or other legal obligations.

- **Legal Restrictions:**
- **Minors are restricted** from entering into contracts or binding agreements under the law, so any vote or decision made in a general meeting would need to be done by the guardian or in the name of the minor.

- **Companies Act Provisions:**
- **Companies Act, 2013** (or the relevant local legislation) governs these aspects. It’s advisable to refer to specific provisions of the Act or consult with a legal expert to ensure compliance with all legal requirements related to minor shareholders.

### **Conclusion:**
- A minor shareholder can attend general meetings and their presence counts towards quorum.
- They cannot cast votes or participate in decisions due to their inability to legally enter into binding agreements.
- A guardian or legal representative usually handles voting and decision-making on behalf of the minor.

For accurate and detailed legal advice, especially if you have unique circumstances, consulting with a company secretary or legal professional is recommended.

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