Recently I was contacted by a prospective new client who was looking to form a Seychelles IBC. In this particular instance the client was wanting to form a Company with custodial law similar to the United States Uniform Transfers to Minors Act (which allows a minor to be a shareholder of a company and the adult, the custodian/controller).
The querist herein was looking for a system which would give ownership to a 6 year old minor daughter (‘the Minor”) but maximum control and power to the adult custodian/trustee. Specifically the prospect was asking whether Seychelles law would consider either parent as automatic custodian.
So what is the legal position in Seychelles? Can a Minor own the shares of a Seychelles IBC?
In short, in the case of a Seychelles IBC (International Business Company), a parent can be the trustee. Under the Civil Code the father has the administration of the Minor’s property so there is no problem with the father being the trustee. If the parties divorce the parent who has custody becomes the guardian and administrator of the Minor’s property.
The parents could be the directors and the Minor could be the shareholder of an IBC. This might meet the requirements of such an enquirer because, since a Minor can be the shareholder of a Seychelles IBC, I cannot see why he/she cannot be the sole shareholder. A Minor can own property, so he/she should be able to be a/the sole shareholder in a company.
Obviously, the minor cannot act while a Minor except through a guardian, but that does not prevent one from being a Seychelles IBC’s sole shareholder. That said it should be noted that it is difficult to administer the property of a Minor, as loans and mortgages can only be obtained after obtaining the court’s prior consent. Likewise, the sale of the company or shares in it would require court approval. All of that restricts the use to which the IBC can be put. But, if the IBC is to be used for the purchase of a house, say, for the Minor, than there should be no problem.
Also it should be noted Minors cannot make decisions and hence a Minor cannot be appointed to a post which requires decisions to be made.