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SHARE TRANSFER TO MINOR

This query is : Resolved 
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(Querist)
01 August 2007 IN LTD. COMPANY ARTICLES PROVIDES RESTRICATIONS ON TRANSFER OF SHARES TO MINORS. THE COMPANY IS LISTED.

IF WE PRACTALLY THINKS THEN A LOT OF SHARES ARE TRANSFERED THROUGH STOCK EXCHANGES. NOBODY KNOWS WHO IS THE BUYER. IF ONE BUYER IS MINOR AND HE PURCHASE SHARE THROUGH STOCK EXCHANGE. THEN HOW ONE CAN KNOW THAT HE IS MINOR.

THEREFORE, I WANT TO KNOW ABT WHETHER IS A CLAUSE THAT COMPANY HAS TO AMEND ITS ARTICLES RELATED TO TRANSFER TO MINOR. WHETHER IT IS IN LISTING AGREEMENT OR IT IS IN DEPOSITARY AGREEMENT
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amit

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amit (Expert)
01 August 2007 a minor is not legally allowed to trade through the stock exhange.. we need to provide details to the depository regarding our age. (now a days PAN card is also necessary which is not available to a minor)
.
as such being 18+ of age is a prerequisite to trade in a stock exchange, which automatically avoids minors to trade in the stock market.
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CA YOGESH

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CA YOGESH (Querist)
01 August 2007 IN LTD. COMPANY ARTICLES PROVIDES RESTRICATIONS ON TRANSFER OF SHARES TO MINORS. THE COMPANY IS LISTED.

IF WE PRACTALLY THINKS THEN A LOT OF SHARES ARE TRANSFERED THROUGH STOCK EXCHANGES. NOBODY KNOWS WHO IS THE BUYER. IF ONE BUYER IS MINOR AND HE PURCHASE SHARE THROUGH STOCK EXCHANGE. THEN HOW ONE CAN KNOW THAT HE IS MINOR.

THEREFORE, I WANT TO KNOW ABT WHETHER IS A CLAUSE THAT COMPANY HAS TO AMEND ITS ARTICLES RELATED TO TRANSFER TO MINOR. WHETHER IT IS IN LISTING AGREEMENT OR IT IS IN DEPOSITARY AGREEMENT
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CA Mani

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CA Mani (Expert)
08 August 2007 Companies Act is allowing minor to acquire shares through gaurdian.

Company cannot such clause in AOA.
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CA YOGESH

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CA YOGESH (Querist)
08 August 2007 hi
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Srinath A. N.

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Srinath A. N. (Expert)
29 September 2007 Any contract with minor is VOID. Hence, for opening of demat account for trading on line, contract ned to be entered with Depository and Depository Participent. Therefore, minor cannot open demat account for trading.
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KAAPIL

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KAAPIL (Expert)
30 October 2007 Dear Yogesh,

Minor bank account will operated U/G and hence the same is operative by Guardian. As regards trading and demat it is not permissible.
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Ravikumar.G

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Ravikumar.G (Expert)
09 November 2007 Very informative
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CHEZHIYAN

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CHEZHIYAN (Expert)
23 August 2008 Thanks
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