Blogger
Share this content
0
5
15317

Minimum age of shareholder

Any anyone tell me what is the minumum age for a person to become a shareholder of a private limited company in UK?

How does it affect a family company.

Thank you for any helpers in advance.

Eric Chan

Replies

Please login or register to join the discussion.

Also affects associated company considerations
Any shares held by a minor are treated as belonging to the parents for working out if there are any associated companies.

If a trust is not used (except for bare trusts which aren't really formal trusts) if the income is less than £100 per year it is not taxed on the parent. The limit is £100 per parent (i.e. max £200)

Thanks (0)

I'm not sure about this
Aren't there tax implications in that a child's income will be deemed to belong to his/her parents?

I also thought that children's shares had to be held in trust. Again, I could easily be wrong.

Thanks (0)

s660
we are possibly back here again if the 'settlor' is a parent?

Thanks (0)

Shares for children
Generally shareholding for children are held in a bare trust on their behalf by relatives, in the same way as a bank account. This means that they are taxed on the child - as long as they didn't come from a parent.

Alternatively they may be held in a discretionary trust of some kind if the settlor doesn't want the child getting full control of the asset when they hit 18.

Thanks (0)

No restriction
There is no age restriction in English company law. However, contract law restrictions are relevant and, if a minor (i.e. someone under 18) is a member, they may not be bound by the Memorandum & Articles of Association as the contract is potentially voidable.

HTH

Jeremy

Thanks (0)