Q: Can the trustee of minor buy shares in company ?

Ans: According to section 11 of Indian Contract Act, 1872, a minor is not eligible to enter into a contract. Thus, a minor can not be the member of company, even if the guardian of minor can purchase shares on behalf of minor. In this case , the guardian of minor works as a trustee and a trustee can not be the member of a company.

If in the ignorance of fact of minority, director alloted the shares to the minor and register his name on the register of companies, the company can cancel such allotment and remove his name from the register of companies on knowing the fact.

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