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Minimum age of shareholder

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

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03rd Dec 2004 14:20

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)

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01st Dec 2004 11:38

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.

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01st Dec 2004 14:17

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

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By NeilW
01st Dec 2004 18:18

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.

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01st Dec 2004 10:58

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

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