Can a minor be a Director

VERY UNFORTUNATELY,   "Ramaiya's Guidelines", won't be acceptable in the Court of Law.  The theory (ramaiya's guidelines) will simply be thrown out of the Court building, once the Court is pointed out that there is a "minor" in the BOD and that resolutions have been passed by minors.

I would say "No point in hallucinating", , unless and until there is a SC (7 bench) ruling to this affect.  It would change the face of the corporate world,  and probably we would be first country in the world to accept (by law) to have minor directors on BOD.

I suppose that it would be further acceptable to Mr. Ramaiya (and a few other followers), to have a all "minor"  BOD, since that too is not prohibited, according to Ramaiya's guidelines.

I further hope that we could have few "minor's" in the Parliament.  That would give a boost to the chocolate & biscuit industry.

Dear ALL,  Please comment, on the brand new concept of an "ALL minor BOD".

Keep Smiling .... Hemant Agarwal

 

Though there is no specific provision in the Act expressly disqualifying a minor from becoming a director, as he is not competent to contract, he cannot file either with the company or with the ROC any valid consent to act as director, as required under section 264.  However, as this section applies only to a public company or a private company which is a subsidiary of a public company, there is nothing prohibiting a minor being a dirctor of a private company which is not a subsidiary of a public company.  But, he cannot be a party to any transaction which requires competency to contract and he cannot be delegated with any powers of the Board because of his incompetency to enter into contracts under the Indian Contract Act.

Dear All

As per some legal cases relating to contact, the Minor can be the receiver in a contact but not the Giver.

So far as Directorship is concerned, there is express liability in the Companies Act to Directors on happening of such event, So Minor can not be a party to such type of contact and hence, can not be  a director.

YES , a minor who has not attained the age of 18 years can become a Director of any Company, provided he is not subject to disqualification order pursuant to Company Directors Disqualification Act, 1986. For Further Clarification, pls mail me on : encyclopediaofvidyasagar@yahoo.com

There we go again.

 

A Quote :   "Better to understand a little than to misunderstand a lot"

 

Keep Smiling .... Hemant

The Company Law Board has laid down in Nandita Jain v. Bennet Coleman & Co. Ltd. that a

minor can become a member provided four conditions are fulfilled:

(a) Company must be a Co. Ltd. by shares.

(b) Shares are fully paid up.

(c) Application for transfer is made on behalf of minor by lawful guardian.

(d) The transfer is manifestly for the benefit of the minor.

This was also confirmed in S.L. Bagree v. Britannia Industries.

In also Diwan Singh v. Minerva Films Ltd. [(3958) 28 Comp. Cases 191 (Punj.), (1959) 29

Comp. Cases 263 (Punj.)], the Punjab High Court held that there is no legal bar to minor

becoming a member of a company by acquiring shares (by way of transfer) provided the

shares are fully paid and no further obligation or liability is attached to them.

Minor can become member by transfer or transmission, but a company may not allow a minor

to be a member by allotment.

Well whether a minor can be a director under the existing laws.. Under the current enactments all directors have to obtain DIN.. A minor is not eligible for DIN.. So even if there is not any specific provision in the companys act prohibiting a minor if the proceedure is anti-minor then that the same as a prohibtion.. So A minor today cannot be a director.. Maybe a deemed director but not a regular director