massachusetts
Is it unlawful for a minor to own shares of a company?
<p>I was wondering if it was unlawful for a minor to own shares of a company in Massachusetts if the company bylaws allow for it.</p>

<p><strong>It is lawful, but not as straightforward as for an adult</strong></p>
<p>As Dale points out, minor children can own stock (or other property) in Massachusetts. However, because unemancipated minors cannot buy or sell property on their own, managing their stocks can be a hassle. For example, children need a guardian if they want to sell the stock.</p>
<p>To avoid these hassles, in many (most?) cases, the stock is owned through some legal entity that gives an adult control over that stock. These range from custodial IRAs to living trusts. In all of these, the stock belongs to the minor, but is managed by an adult. These entities differ in all sorts of ways, including when (if ever) the minor gets control of the stock, how the stock is taxed, what the stock can be used for, and so on.</p>
<p>One of the most popular entities is a <a href="https://www.investopedia.com/terms/u/utma.asp" rel="nofollow noreferrer">UTMA Account</a>. These are named after the <em>Universal Transfer to Minors Act,</em> found at <a href="https://malegislature.gov/Laws/GeneralLaws/PartII/TitleII/Chapter201a" rel="nofollow noreferrer">Chap. 201A</a> of the <em>General Laws of Massachusetts</em>. These are custodial accounts designed specifically to allow minors to hold property, including stock. These accounts simplify the management of the minor’s stock, and offer some tax breaks. In Massachusetts, the custodianship <em><a href="https://malegislature.gov/Laws/GeneralLaws/PartII/TitleII/Chapter201A/Section20" rel="nofollow noreferrer">generally</a></em> terminates when the minor turns 21. At that point, she gets complete control of her stock.</p>
<p>To find out more about the advantages and disadvantages of the UTMA compared to other ways of holding property for children, see <a href="https://www.thebalance.com/beginners-guide-to-ugma-and-utma-custodial-accounts-4060475" rel="nofollow noreferrer">here</a>, <a href="https://www.forbes.com/sites/christinefletcher/2019/12/12/why-utma-accounts-are-not-as-simple-as-they-seem/#74aeb79c7b34" rel="nofollow noreferrer">here</a> and <a href="https://southcoastestateplanning.com/when-can-my-child-get-the-money-in-the-utma-custodial-account-i-created-2/" rel="nofollow noreferrer">here</a>.</p>

<h2>No</h2>
<p>Minors can possess personal property like shares. Further, <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter155/Section21" rel="nofollow noreferrer">s21</a> explicitly contemplates guardians (among others) exercising the rights of their wards. Now, not only children have guardians but <em>all</em> children do.</p>
