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’s 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.

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Contacts

Nicola Cowburn

Formations Manager

0113 224 5456

nicola.cowburn@yorkplace.com


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