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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11753
Experience:  30 years as a practising solicitor.
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My sons have shares in the family property company, bequeathed

Resolved Question:

My sons have shares in the family property company, bequeathed to them by my mother( on my advice to save a tier of inheritance tax) but her will stated that the shares are only to be received by them ,when each reached the age of forty years, at the sole discretion of the trustees.
Do they have the right to vote as shareholders and are they legally entitled to receive the Annual Accounts of the Company whilst their shares are in trust or is this only mandatory when they each reach forty years of age and receive their share certificates.?
Submitted: 3 years ago.
Category: Scots Law
Expert:  JGM replied 3 years ago.
Thank you for your question.

From what you say this is a discretionary trust therefore the sons have no right to the shares. Potentially they have a right to become shareholders if the trustees exercise their discretion and transfer the shares when they are 40. Until then they have no rights.

Until then the trust owns the shares and has the right to vote, receive dividends if appropriate, get the accounts, notice of meetings etc.

I hope this helps. Please leave a positive response so that I am credited for my time.
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