We advised a wealthy private individual in complex legal matters related to the transfer of a company to a minor.
Helping to secure financial independence
The parents wanted their minor child to have accumulated enough assets by the time she reached adulthood to help her become financially independent. For this purpose, the parents set up a company, which they later wished to transfer to the child.
In addition, the parents’ aim was to increase and invest the company’s assets after the transfer to the child, thereby increasing the assets of the child who owned the company. The consent of the court was required in order to transfer the shares in the company to the child and to exercise the rights of a sole shareholder until the child became an adult.
This case presented a unique challenge as we had to assist in the process and compile relevant documents to enable the minor child to own 100% of a company and therefore become a sole owner. In addition to this, we had to make necessary changes to the company to ensure that it could operate efficiently after the transfer without needing to seek court consent each time. The filing of such an application on behalf of a minor of this age was rather a rare occasion in practice. However, our team was able to obtain the court’s consent, and the company was transferred in less than three months.
Our services and client team
We assisted the client in all stages of the process, from the incorporation of the company to obtaining the court’s consent. The present case initially involved advising the client on the incorporation of the company, the choice of the right corporate form, the preparation of corporate documents, company registration and clarification of tax obligations. Once the company was incorporated, the second step was to obtain consent by drafting the application, representing parents in court and negotiating with relevant authorities.