November 14th, 2017

Potential Pitfalls of Issuing Shares to a Minor

Thinking of having children under 18 hold shares in a company? Our corporate compliance team are increasingly helping clients looking after family companies interested in this route for tax purposes - however, you may not be aware of all the legal issues involved.

Our corporate compliance team offer the following solutions:

  • Where a minor holds voting shares it is not clear that they can validly exercise their voting rights before turning 18. This could potentially hinder the company‚Äôs ability to meet quorum requirements necessary for general meetings.
  • Even where a minor is old enough to both sign documents and understand what they are signing, any agreement or obligations that minor enters into regarding company shares will not be legally binding on them and can be renounced up until the point that they turn 18.

Contact our corporate compliance team for advice and they can work with you to find the best solution.

Return to News

Contacts

Nicola Cowburn

Formations Manager

0113 224 5456

nicola.cowburn@yorkplace.com


Subscribe to our Newsletter


Upcoming Events

Webinar – Hidden Risks of Mining – 25th Oct, 11am

Register


Past Events

CPD Webinar

12th Sept 11am


Free CPD Session

3rd July 10am, Leeds


Social