CAN MY CHILD BE A SHAREHOLDER IN MY COMPANY?
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.
Team 618 Bees
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