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    Incorporation of Company

    Posted By : Shiriti / Published on : 07-Oct-2020 10:55 AM / View : 844 / Comment : 2

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    Dear Members,

    We are Incorporating a Private Limited Company. A person has attained the age of 18 years on 2nd October 2020 (meaning he has completed 17 years on 2nd October 2020). Can we appoint him as the proposed Director cum shareholder of the proposed company?? Kindly advise.
    Read more on : company incorporation

    • Proposed director must have attained age of 18 years. PAN is required for registration process. 

      20-08-2021 / 02:43:55 PM
      Reply
    • Dear Ma'am,

      Greetings!

      as per section 196(3) of CA act 2013

       No company shall appoint or continue the employment of any person as managing director, whole-time director or manager who —

      (a) is below the age of twenty-one years or has attained the age of seventy years:

      Provided that appointment of a person who has attained the age of seventy years may be made by passing a special resolution in which case the explanatory statement annexed to the notice for such motion shall indicate the justification for appointing such person;

      however law is silent for part time directors, by taking plain interpretation at first instance it seems  that a person below the age of 21 years can be appointed as a part time director

      but when we file DIR-3 for application for DIN it shows error if Date of birth is such that 18 years are not completed for applicant,

      therefore, it can safely be concluded that a person below the age of 18 years can not be appointed as a director due to DIN

      a minor can become member of the company only for fully paid-up shares of the company there is a celebrated case law of Dewan Singh Hira Singh vs Minerva Films Ltd. on 24 September, 1958

       

      Thank you!

      20-04-2022 / 06:13:05 AM
      Reply
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