LEGAL REGULATION OF CORPORATE RIGHTS OWNED BY MINORS AND JUVENILES

Abstract

This article addresses the issues of legal regulation of corporate rights owned by minors and juveniles. Particular attention is devoted to the participation of such persons in limited liability companies (LLCs), given that LLCs represent the most prevalent organizational and legal form in corporate practice. Minors who acquire the status of participants in an LLC are not entitled to independently exercise their management rights within the company. Such rights are exercised exclusively through their legal representatives in accordance with statutory provisions. In contrast, juveniles who obtain the status of participants in an LLC may exercise their rights independently or through representatives.The article further investigates the procedure for the formation of the company’s charter capital through the property belonging to a juvenile, which is subject to the general legal regime governing the administration of a child’s property. Pursuant to paragraph 1 of part 1 of Article 32 of the Civil Code of Ukraine, a juvenile has the right to independently dispose of his or her wages, scholarship, or other income. Contributions to the charter capital from other types of property owned by a juvenile, however, require the prior consent of the parents and the guardianship and custody authority, in accordance with applicable legislation. The deficiencies in the current legal framework regulating the alienation of corporate rights belonging to minors and juveniles are also identified. The article analyzes existing legislation governing the requirement to obtain consent from the guardianship and custody authority. The alienation of corporate rights owned by minors or juveniles is contingent upon obtaining such consent. Nevertheless, the legislator has failed to provide an exhaustive list of documents that must accompany the application submitted by a representative to the guardianship and custody authority, which significantly complicates the process of obtaining approval. In light of these shortcomings, the article emphasizes the necessity of developing a clear and consistent mechanism for granting consent of the guardianship and custody authority to the alienation of corporate rights owned by minors and juveniles.