AdrianC wrote:I'm set to inherit some shares in the privately held family business. I want to give these shares to my niece and nephew. I assume this will be a simple Instrument of Variation letter.
How old are they? I thought you had to be over 18, but that isn't the case. It depends on the company articles.
From
https://www.1stformations.co.uk/blog/minimum-age-shareholder/"Shareholder
There is no statutory provision that prohibits a minor (under the age of 18) from owning shares in a UK company. As such, there is no minimum age for a limited company shareholder in the UK, unless the company’s articles impose an age restriction on members.
Whilst less common in small private companies, public companies (PLCs) often exclude minors from being shareholders. In such instances, parents or grandparents may hold shares on their behalf, either as trustees/nominees or by using some form of investment trust."
This seems a fairly comprehensive description.
I didn't know anything about most of it, especially
"Directors’ power to refuse a share transfer
In many companies, the articles of association give directors the power to refuse to register a share transfer. This provision is included in the model articles for private companies limited by shares.
Therefore, even if the articles impose no minimum age requirement for shareholders, the board of directors may not agree to accept a transfer of shares to a child.
Accordingly, you should consult the directors prior to making any such arrangements to gift shares to your child."
I don't know if this also applies to nieces and nephews.
(another) Adrian