Infants As Corporate Shareholders: The Position In Malaysia
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 (Co...
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| Main Authors: | , , , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2017
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| Subjects: | |
| Online Access: | http://eprints.unisza.edu.my/1256/1/FH03-FUHA-18-12035.pdf http://eprints.unisza.edu.my/1256/ |
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| Summary: | 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. Thus, it is important for this paper
to investigate the issues regarding the legality of infants to own shares, and the implications
arising pursuant to their status as shareholders. The study is based on qualitative approach
which employs library research method for data collection. The study analyses various texts
such as statutes, books, journals and reports. 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, hence entails deep consideration by
the family especially parents or guardians before they ultimately decide to make their infants
as shareholders in their company. |
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