With effect from 1 March 2009, any person aged 18 years and above may be appointed as a director. However, certain individuals (e.g. bankrupts and persons convicted of offences involving fraud or dishonesty) are disqualified from holding director positions.
In general, anyone can be the Company shareholder. There is no statutory restriction prohibit a minor who is below 18 years old from owning shares of a company. However, at common law a child will not be bound by a contract to buy shares as they are not ‘necessaries’. Therefore, some companies will not accept shareholders under the age of 18 years by provision in their articles or terms of issue.
Although the minor are allowed for signing of contracts, however, the contract entered are subject to repudiation by the minor before reaching the age of maturity.
As a conclusion, we will recommend the company shares be held on trust for the benefit of the minor until he/she reaches the age of maturity.