shares in the name of minor
This query is : Resolved
13 July 2009
I have some shares which are in the name of minor who has now become a major.What has to be done to change the statuss of those shares as major?
13 July 2009
Pl see section 187C of the Companies Act,1956.
13 July 2009
Pl see section 187C of the Companies Act,1956.
13 July 2009
sir, kindly explain the procedure in detail,
25 July 2025
Certainly! Here's a **clear, step-by-step explanation** of the procedure to update the **status of a shareholder from minor to major** for shares in a **Private Limited Company**, under the **Companies Act, 1956 (now largely replaced by the Companies Act, 2013)**.
---
## ✅ Legal Background:
Under the **Companies Act, 1956**, **Section 187C** dealt with **declaration of beneficial interest in shares** — which was relevant if the shares were held *on behalf* of someone else (like a minor through a guardian).
But your case is more straightforward:
> The shares are **in the name of the minor**, and now the **minor has attained majority** (i.e. turned 18).
> You're **not transferring** the shares — only updating the shareholder's **legal status**.
---
## ✅ Procedure to Update Status from Minor to Major
### 🔹 1. **Prepare a Formal Request Letter** (Mandatory)
From the **now-major individual** to the company, requesting:
* Recognition as a **major shareholder**
* Removal of guardian’s name from the register of members (if previously mentioned)
---
### 🔹 2. **Include Supporting Documents** (Mandatory)
Attach the following:
1. **PAN card** (self-attested) of the now-major shareholder
2. **Proof of date of birth** (Aadhaar card / Birth Certificate)
3. **Original Share Certificate** (if shares are held in physical form)
4. **Copy of original allotment letter / folio number** (if available)
---
### 🔹 3. **Optional: Guardian’s No Objection Certificate (NOC)**
* If the shares were applied for or held **under the name of a guardian**, attach a **simple NOC** from the guardian stating they no longer act on behalf of the shareholder.
---
### 🔹 4. **Submit to the Company / RTA**
Send all documents to the:
* **Company Secretary**, or
* **Registrar and Share Transfer Agent (RTA)** of the company
---
### 🔹 5. **Company Action**
After verifying the documents:
* The company updates the **Register of Members**
* May issue a **letter of confirmation**, or endorse the change on the **existing share certificate**
---
## 📜 Sample Letter Format:
> **To:**
> The Company Secretary
> \[Company Name]
> \[Company Address]
>
> **Subject:** Request for change of status from minor to major – Shares held in my name
>
> Dear Sir/Madam,
>
> I, \[Full Name], am holding \[number] equity shares of your company registered in my name when I was a minor, under the guardianship of \[Guardian's Name].
>
> I have now attained the age of majority as of \[Date of Birth – dd/mm/yyyy]. I kindly request you to update your records and recognize me as a major shareholder.
>
> I am enclosing the following documents for your reference:
>
> 1. Self-attested PAN card
> 2. Proof of Date of Birth (Aadhaar/Birth Certificate)
> 3. Share Certificate (physical)
> 4. Guardian’s NOC (if applicable)
>
> Kindly do the needful and confirm the same.
>
> Thanking you,
>
> Yours sincerely,
>
> \[Signature]
> \[Full Name]
> \[PAN]
> \[Address]
> \[Contact Number]
---
## ✅ Key Points:
| Item | Required? |
| ------------------------ | --------------------- |
| Formal Letter from Major | ✅ Yes |
| PAN & DOB Proof | ✅ Yes |
| Share Certificate | ✅ If in physical form |
| Guardian’s NOC | ⚠️ Recommended |
| Transfer Deed (SH-4) | ❌ Not required |
| Stamp Duty | ❌ Not applicable |
---
Let me know if you want a **Word or PDF version of the letter** or if the shares are **in demat form** — the process differs slightly in that case.
---
## ✅ Legal Background:
Under the **Companies Act, 1956**, **Section 187C** dealt with **declaration of beneficial interest in shares** — which was relevant if the shares were held *on behalf* of someone else (like a minor through a guardian).
But your case is more straightforward:
> The shares are **in the name of the minor**, and now the **minor has attained majority** (i.e. turned 18).
> You're **not transferring** the shares — only updating the shareholder's **legal status**.
---
## ✅ Procedure to Update Status from Minor to Major
### 🔹 1. **Prepare a Formal Request Letter** (Mandatory)
From the **now-major individual** to the company, requesting:
* Recognition as a **major shareholder**
* Removal of guardian’s name from the register of members (if previously mentioned)
---
### 🔹 2. **Include Supporting Documents** (Mandatory)
Attach the following:
1. **PAN card** (self-attested) of the now-major shareholder
2. **Proof of date of birth** (Aadhaar card / Birth Certificate)
3. **Original Share Certificate** (if shares are held in physical form)
4. **Copy of original allotment letter / folio number** (if available)
---
### 🔹 3. **Optional: Guardian’s No Objection Certificate (NOC)**
* If the shares were applied for or held **under the name of a guardian**, attach a **simple NOC** from the guardian stating they no longer act on behalf of the shareholder.
---
### 🔹 4. **Submit to the Company / RTA**
Send all documents to the:
* **Company Secretary**, or
* **Registrar and Share Transfer Agent (RTA)** of the company
---
### 🔹 5. **Company Action**
After verifying the documents:
* The company updates the **Register of Members**
* May issue a **letter of confirmation**, or endorse the change on the **existing share certificate**
---
## 📜 Sample Letter Format:
> **To:**
> The Company Secretary
> \[Company Name]
> \[Company Address]
>
> **Subject:** Request for change of status from minor to major – Shares held in my name
>
> Dear Sir/Madam,
>
> I, \[Full Name], am holding \[number] equity shares of your company registered in my name when I was a minor, under the guardianship of \[Guardian's Name].
>
> I have now attained the age of majority as of \[Date of Birth – dd/mm/yyyy]. I kindly request you to update your records and recognize me as a major shareholder.
>
> I am enclosing the following documents for your reference:
>
> 1. Self-attested PAN card
> 2. Proof of Date of Birth (Aadhaar/Birth Certificate)
> 3. Share Certificate (physical)
> 4. Guardian’s NOC (if applicable)
>
> Kindly do the needful and confirm the same.
>
> Thanking you,
>
> Yours sincerely,
>
> \[Signature]
> \[Full Name]
> \[PAN]
> \[Address]
> \[Contact Number]
---
## ✅ Key Points:
| Item | Required? |
| ------------------------ | --------------------- |
| Formal Letter from Major | ✅ Yes |
| PAN & DOB Proof | ✅ Yes |
| Share Certificate | ✅ If in physical form |
| Guardian’s NOC | ⚠️ Recommended |
| Transfer Deed (SH-4) | ❌ Not required |
| Stamp Duty | ❌ Not applicable |
---
Let me know if you want a **Word or PDF version of the letter** or if the shares are **in demat form** — the process differs slightly in that case.
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