children as 51% owner?

[sead]

So i have 2 children in Sweden with a Thai born in Sweden. Doesnt matter actually. Mother have Thai passport so i could easy get same for my children aged 12 and 14.

Can i have family members to cover the 51% thai ownership?

[CharlieH]

ownership of what ?...the dog ? the car ....what ?

assuming you mean property...lets move this to the property forum.

[trogers]

I think the OP meant setting up a Thai-majority owned company.

And only adults can do that - age 20 and older.

[huawei]

I think the OP meant setting up a Thai-majority owned company.

And only adults can do that - age 20 and older.

My daughter was a shareholder of my company at 13. Setup by a lawyer.

[trogers]

I think the OP meant setting up a Thai-majority owned company.

And only adults can do that - age 20 and older.

My daughter was a shareholder of my company at 13. Setup by a lawyer.

Lawyers can do many things about paperwork, but I believe only adults can setup a business entity. Question about your daughter being a valid shareholder may be probed should the company faced legal enquiry.

But children can inherit shares to an existing company. Setting up one is not the same.

Edited January 9, 2016 by trogers

[PattayaPhom]

I think the OP meant setting up a Thai-majority owned company.

And only adults can do that - age 20 and older.

My daughter was a shareholder of my company at 13. Setup by a lawyer.

Lawyers can do many things about paperwork, but I believe only adults can setup a business entity. Question about your daughter being a valid shareholder may be probed should the company faced legal enquiry.

But children can inherit shares to an existing company. Setting up one is not the same.

Lawyers certainly can say and do many things. My experience is as you stated, must be an adult

[huawei]

So a person has to be 20 to hold shares say of a listed company quoted on the stock exchange.

[TheCruncher]

So a person has to be 20 to hold shares say of a listed company quoted on the stock exchange.

That is not what the posters said, they said to SET UP the company.

[huawei]

So a person has to be 20 to hold shares say of a listed company quoted on the stock exchange.

That is not what the posters said, they said to SET UP the company.

Yes I know. I am just stating that when my company was setup my daughter was registered as a shareholder Holding 51% of the shares. What's the difference.that is what the op is referring to.

my lawyer actually set up the company.

[TheCruncher]

So a person has to be 20 to hold shares say of a listed company quoted on the stock exchange.

That is not what the posters said, they said to SET UP the company.

Yes I know. I am just stating that when my company was setup my daughter was registered as a shareholder Holding 51% of the shares. What's the difference.that is what the op is referring to.

my lawyer actually set up the company.

Because a Thai lawyer put it on paper doesn't make it law.

A Thai lawyer will also tell you without any remorse that it is perfectly legal to set up a company solely to own a property,

[huawei]

So a person has to be 20 to hold shares say of a listed company quoted on the stock exchange.

That is not what the posters said, they said to SET UP the company.

Yes I know. I am just stating that when my company was setup my daughter was registered as a shareholder Holding 51% of the shares. What's the difference.that is what the op is referring to.

my lawyer actually set up the company.

Because a Thai lawyer put it on paper doesn't make it law.

A Thai lawyer will also tell you without any remorse that it is perfectly legal to set up a company solely to own a property,

My company is active and does not own any property.

We are talking about valid share ownership here as trodgers pointed out that earlier not about setting up a company.

Regardless if it a quoted or unquoted company.

Where is the reference to the age limit.

Actually when I first asked about property ownership through a company way back in the early 90's I was told by the company's lawyers ( I worked for an international company ) that it was illegal. As with anything else it's who you talk to. Also you do realise it was foreigners ( foreign developers) selling the " dream" home that started off publizing ownership thru companies and not Thais.

[aliep]

A child can be a shareholder, they cannot be a director. No problem owning shares whatsoever, perfectly legal. period.

[onekoolguy]

Minors can own things, including real estste. But they can't sign to sell or transfer.

[sead]

Yes sorry for not explaining more correct. I want to setup a company and have my children to cover the 51% as shareholders.

[trogers]

Yes sorry for not explaining more correct. I want to setup a company and have my children to cover the 51% as shareholders.

For the purpose of?

[sead]

Yes sorry for not explaining more correct. I want to setup a company and have my children to cover the 51% as shareholders.

For the purpose of?

Grrrrr To open another shop selling stuff. I already have opened this shop but am now opening in more places because it goes nice. My ex gf is working now and she knows i want to register a company without her in the papers.

Edited January 11, 2016 by sead

[trogers]

Yes sorry for not explaining more correct. I want to setup a company and have my children to cover the 51% as shareholders.

For the purpose of?

Grrrrr To open another shop selling stuff. I already have opened this shop but am now opening in more places because it goes nice. My ex gf is working now and she knows i want to register a company without her in the papers.

How does a company with major shares held by minors sign any contracts or issue purchase orders?

[onekoolguy]

Put the shares in a trust for the minors. The trustee can sign papers etc.

[cabanlit]

In a 'normal' limited company, shareholders are, by definition, limited to liability.

If any proposed shareholder is not of an age to be considered liable in law, then they can't be legal shareholders. End of.

[innerspace]

Yes sorry for not explaining more correct. I want to setup a company and have my children to cover the 51% as shareholders.

For the purpose of?

Grrrrr To open another shop selling stuff. I already have opened this shop but am now opening in more places because it goes nice. My ex gf is working now and she knows i want to register a company without her in the papers.

How does a company with major shares held by minors sign any contracts or issue purchase orders?

Since when do majority shareholders need to be directors?

Children can be shareholders and not aware (but not lawyer) of limits of how much.

Children can't be director or sign things.

Legal guardian of child would be able to exercise child's voting rights at agm etc buy must act in child's interests.

However you can't sell the shares without a court order, rarely given.

And think it may also prevent company from obtaining loans or finance, does on property not sure if extends to business too.

Above based on over a decade of research and knowledge, no official Thai law training but believed to be accurate with this disclaimer. To get facts consult a trusted lawyer.

[khunPer]

Yes sorry for not explaining more correct. I want to setup a company and have my children to cover the 51% as shareholders.

My Thai daughter is shareholder, from she was 4 years old, in "my" Co. Ltd.

Minors (under 21) can be shareholders, but the guardian control the shares. However, I don't know if the guardian need to be a Thai national, as otherwise a foreigner can control the company with votes. Please check with a Thai business lawyer – and in such case, do you trust the Thai guardian...?

Edited January 11, 2016 by khunPer

[sead]

Seems theres some hope. Ofc i will contact lawyer but it eases my mind that theres a small possibilty. ty all for answers

[trogers]

Yes sorry for not explaining more correct. I want to setup a company and have my children to cover the 51% as shareholders.

My Thai daughter is shareholder, from she was 4 years old, in "my" Co. Ltd.

Minors (under 21) can be shareholders, but the guardian control the shares. However, I don't know if the guardian need to be a Thai national, as otherwise a foreigner can control the company with votes. Please check with a Thai business lawyer and in such case, do you trust the Thai guardian...?

The trick of this case is that 51% of the company's shares are held by minors, and such a structure is made deliberately at the start during setting up the company.

This differs from companies that have a small percentage of shares held by minors.

So it seems, nominees are being used on the onset.

[khunPer]

Yes sorry for not explaining more correct. I want to setup a company and have my children to cover the 51% as shareholders.

My Thai daughter is shareholder, from she was 4 years old, in "my" Co. Ltd.

Minors (under 21) can be shareholders, but the guardian control the shares. However, I don't know if the guardian need to be a Thai national, as otherwise a foreigner can control the company with votes. Please check with a Thai business lawyer and in such case, do you trust the Thai guardian...?

The trick of this case is that 51% of the company's shares are held by minors, and such a structure is made deliberately at the start during setting up the company.

This differs from companies that have a small percentage of shares held by minors.

So it seems, nominees are being used on the onset.

I would think, that the guardian for a minor need to be a "real guardian", like mum and/or dad for example, not just any nominee; re. my note above. According to my lawyer a minor can hold shares and land, the latter 100 percent; my daughter for example own a landplot since shortly after birth; and her company shares are not a small percentage, however less than 50%.

[trogers]

Yes sorry for not explaining more correct. I want to setup a company and have my children to cover the 51% as shareholders.

My Thai daughter is shareholder, from she was 4 years old, in "my" Co. Ltd.

Minors (under 21) can be shareholders, but the guardian control the shares. However, I don't know if the guardian need to be a Thai national, as otherwise a foreigner can control the company with votes. Please check with a Thai business lawyer and in such case, do you trust the Thai guardian...?

The trick of this case is that 51% of the company's shares are held by minors, and such a structure is made deliberately at the start during setting up the company.

This differs from companies that have a small percentage of shares held by minors.

So it seems, nominees are being used on the onset.

I would think, that the guardian for a minor need to be a "real guardian", like mum and/or dad for example, not just any nominee; re. my note above. According to my lawyer a minor can hold shares and land, the latter 100 percent; my daughter for example own a landplot since shortly after birth; and her company shares are not a small percentage, however less than 50%.

There is no dispute on land ownership by a Thai infant.

Questions arise for a business entity.

[blackcab]

To establish a private limited company you need 3 promoters. The promoters must be 12 years of age or older.

To establish a public limited company (not really applicable for the readers of this forum) you need 15 promoters who must be 20 years of age or older.

Shareholders can be any age with the exception that a child aged under 12 cannot hold the shares of a private limited company as a promoter (see above). However the shares can be transferred to a child aged under 12 immediately after incorporation.

Directors must be at least 20 years of age. This is because a Director must have the capacity to bind the company to a contract, and only sane and solvent adults can do that.

In your case you can get a solicitor to arrange the promoters for you and then transfer the shares to your children afterwards. You might also consider restricting your own shareholding to 39% to ensure the company is not investigated to determine who is actually controlling the company. Remember also that the minimum number of shareholders is 3.

The real question, howwver, is not about the shareholders, it is who are going to be the company director(s)?

You need a minimum of 1 director. You can be the managing director, but if you live in Thailand you will need a work permit. Your children cannot be directors if they are under 20 years of age. Your wife could be the sole director, or you could both be directors.

To answer your question directly, what you want to achieve its possible with some careful thought and planning.

[TravelerEastWest]

Blackcab has given the best answer so far.

You might consider owning 49% of the total shares but 100% of the common shares and have your children own preferred shares.

The young children probably can't be promoters but shortly after starting the company they can be shareholders.