Can minors have shareholdings?
Some issuers may specifically preclude shareholdings from registration in a minor’s name. Where not specifically precluded, minors are able to hold shares in their name. However, this may present several impracticalities and legal constraints. The following problems could occur: • The contract to purchase the securities may not be valid. • Tax File Number Legislation requires that a TFN or valid exemption is quoted, or resident withholding tax is deducted, from any unfranked payment. Children under 16 years earning Income from dividends are not able to claim their date of birth as an exemption. The income threshold does not apply to dividend income. • They may not be legally entitled to sell shares or sign any transfer out of their name. • They are not legally allowed to appoint a proxy or vote at meetings. • They may not be allowed to issue instructions regarding change of address, banking requests and dividend elections. To overcome these difficulties, securities to be held for a min
Some issuers may specifically preclude shareholdings from registration in a minor’s name. Where not specifically precluded, minors are able to hold shares in their name, however this may present several impracticalities and legal constraints. The following problems could occur; • The contract to purchase the securities may not be valid. • Tax File Number Legislation requires that a TFN or valid exemption is quoted, or • resident withholding tax is deducted from any unfranked payment. Children under 16 years of age earning income from dividends are not able to claim their date of birth as an exemption. The income threshold does not apply to dividend income. • They may not be legally entitled to sell shares or sign any transfer out of their name. • They are not legally allowed to appoint a proxy or vote at meetings. • They may not be allowed to issue instructions regarding change of address, banking requests and dividend elections. To overcome these difficulties securities to be held for
