Devan Singh Vs. Minerva Films Ltd. [AIR 1956 Punjab 106],

Devan Singh Vs. Minerva Films Ltd. [AIR 1956 Punjab 106], the Punjab High Court held that there is no legal bar to a minor

becoming a member of a company by acquiring shares provided the shares

are fully paid-up and no further obligation or liability is attached to them. 2. Company. A company, being an artifical person, can become the member of

another company, if so authorised by its Articles or Memorandum. However, by Section 372, some restrictions have been placed on the power of a

company to invest in shares or debentures of other companies. A company cannot be its own member as purchase of own shares by a company is

prohibited under Section 77 of the Companies Act, 1956. A subsidiary company carmot be a member of its holding company as any allotment or transfer

of shares in its name in the holding company is void except ,;hen it acts as a legal representative of a deceased member of the holding company or as a

trustee but is not beneficially interested in the trust or wlen allotment or transfer is by way of security for purposes of a transaction entered into in ordinary

course of business. 3. Partnership. A partnership firm cannot be a member of a company as it is not a person in the eyes oflaw. The partners may acqliire

membership In a company individually. Partners may be registered as Joint holders in which case each of them becomes a member. I However, a firm

can be a member in a company if formed for charitable purposes under Sec. 25.

4. Hindu Undivi(‘ed Family. A Hindu undivided family can purchase shares in a company through its Karta, i. e., the karta only shall become the member of