Infants as Corporate Shareholders in Family Corporations: The Position in Malaysia
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2018, Vol 8, Issue 12
Abstract
Background: Family business owners sometimes incline to have their family members to benefit from the business by making them as shareholders in the incorporated family business. Infants or minor children are not excluded from being given similar opportunity to have such stake in the company. The Act 777 (Companies Act 2016) does not prescribe the age requirement for a person to effectively become a shareholder in a company. Objective: This paper investigates the issues regarding the legality of infants to own shares in family corporations, and the implications arising pursuant to their status as shareholders. Results: The study reveals that although there is no statutory restrictions in the Act 777 alone for an under-aged person to hold shares, infants are exposed to various legal consequences as shareholders. Conclusion: Such legal consequences entail deep consideration by the family especially parents or guardians before they ultimately decide to make their infants as shareholders in their company.
Authors and Affiliations
Kamaliah Salleh, Noor ‘Ashikin Hamid, Noraida Harun, Asiah Bidin, Zuhairah Ariff Abd Ghadas
Keywords
Related Articles
- EP ID EP594326
- DOI 10.6007/IJARBSS/v8-i12/5254
- Views 60
- Downloads 0
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