Transmission of shares

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2013 Respected members,

We are well aware that the fully paid up shares can be transferred/ transmitted to a minor, provided the name of the guardian and not that of the minor is entered in the Register of members.

My query is Can a minor ( through guardian ) transfer those shares.

Regards,
Shinod K P

Guest

Guest (Expert)

30 April 2013 A minor can not transfer his shares. If, transferee is a minor, transfer of shares is to be effected in accordance with the provisions of the Articles of Association of the company, where shares to be transferred are fully paid-up, there is no problem for companies to register the same. In favor of minors through guardian.

Querist : Anonymous

Querist : Anonymous (Querist)

30 April 2013 Dear Madam,

Thank you for your fast response.. I ve a doubt.

Should the minor hold shares ( acquired by transmission ) until he/ she attains majority.

I feel it can be transferred through the guardian.

Shinod K P

Guest

Guest (Expert)

30 April 2013 Any contract/ agreement/ act adversely affecting minor or infringing his rights / benefits is null and void since he is not competent to enter into contract and hence it is not permitted.

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

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!