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can a minor be a shareholder and under which section
Replies (3)
Minor can not become shareholder of a company. However he can be a transferee of fully paid shares.As per Indian Contract Act ,1872, Minor is not eligible to enter into a contract or he in considered as incompetent to enter into a contract.
In case the Nominee is a Minor, on death of the shareholder. Shares should be transmitted to the Minor under the guardianship as mentioned in the nomination form till the Minor attains majority.Beneficial interest will be with the Minor.
In case the Nominee is a Minor, on death of the shareholder. Shares should be transmitted to the Minor under the guardianship as mentioned in the nomination form till the Minor attains majority.Beneficial interest will be with the Minor.
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