CAN MY CHILD BE A SHAREHOLDER IN MY COMPANY?

CAN MY CHILD BE A SHAREHOLDER IN MY COMPANY?

September 09, 2018

WHO IS A CHILD?

A child, also referred to as a minor, by definition is one who is less than 18 years of age.

If your child is less than 18 years of age, he is a minor and can be a shareholder in your company, provided that there are 2 adults that are listed as shareholders in the same company, this is based on the authority of S.20 of the Companies and Allied Matters Act (CAMA), which provides that, everyone, except those that fall under the following categories can hold shares in a company;

(a) Anyone less than 18 years of age

(b) A person who is of unsound mind and has been so found by a court in Nigeria or elsewhere

(c) An undischarged bankrupt

(d) A person disqualified by the Act from being a director of a company

(e )A corporate body in liquidation

The section of the act further provides that a person less than 18 years of age shall not be disqualified from being a shareholder if two other persons not disqualified under that subsection have been listed as shareholders. Consequently, if your child is less than 18 years of age, he can be a shareholder in your company, provided there are 2 adults who are shareholders in the same company.

Best regards,

Team 618 Bees

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advise, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advise from the particular facts and circumstances at issue from a lawyer.

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