Q.Can a minor be admitted as a member of a company? Discuss with reference to the Companies Act, 2013.

The Companies Act, 2013 does not itself use the word 'minor', so the answer comes from general contract law read alongside company practice.

Under Section 11 of the Indian Contract Act, 1872, a minor is not competent to contract, and it has been settled since Mohori Bibee v. Dharmodas Ghose that an agreement by a minor is void ab initio — not merely voidable. Since becoming a member by application and allotment rests on an enforceable contract between the applicant and the company, a minor cannot directly and validly apply for shares in his own name and be admitted as a member on that application.

In practice, this does not shut a minor out of ownership altogether. A natural guardian (usually a parent) or a lawful guardian appointed by a competent court can apply for shares on the minor's behalf, sign the application and all related documents, and hold the shares for the minor's benefit; the guardian, not the minor, incurs the contractual liability, including the liability to pay any calls that fall due. …

A frequent error is to say minors are 'completely barred' from any connection with shares, ignoring the guardian route, or to say a minor's contract is merely 'v …