Alok incorporated a One Person Company making his sister Apeksha as the nominee. Apeksha is an Indian citizen. She was born and brought up in…
CA Intermediate · Corporate and Other Laws · MTP · May 2025
Alok incorporated a One Person Company making his sister Apeksha as the nominee. Apeksha is an Indian citizen. She was born and brought up in Moradabad. However, now Apeksha and her husband are leaving India permanently to stay with their son who is settled abroad for the last 15 years. Due to this fact, she is withdrawing her consent of nomination in the said One Person Company. Taking into considerations the provisions of the Companies Act, 2013, advise whether Alok can appoint his minor son Shambhu as the nominee of the OPC?
Suggested Answer and Working Notes:
According to Rule 3 of the Companies (Incorporation) Rules, 2014, only a natural person, other than minor; who is an Indian citizen and whether resident in India or otherwise shall be eligible to incorporate a One Person Company. The memorandum of One Person Company shall also indicate the name of the natural person, other than minor; who is an Indian citizen, whether resident in India or otherwise (as nominee), along with his prior written consent, who shall, in the event of the subscriber's death or his incapacity to contract become the member of the company. As per the facts of the question, Apeksha as the earlier nominee is withdrawing her consent of nomination in the OPC of her brother Alok. Now, Alok is intending to appoint her son Shambhu as the nominee in his OPC. In the light of the provision of the Companies Act, 2013, it is clear that a minor cannot be appointed as a nominee/ member of OPC. Hence, Alok cannot appoint his son Shambhu as a nominee to his OPC.
Topics: Incorporation of Company and Matters Incidental Thereto
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