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minor

Navin Agarwal (354 Points)

18 November 2017

can a minor be a shareholder and under which section

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Sunil Ahmad (Student) (1511 Points)
Replied 18 November 2017

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.

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Sunil Ahmad (Student) (1511 Points)
Replied 18 November 2017

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.