I’ve written before concerning my doubts about the advisability of issuing shares that are redeemable for a nominal amount but that are entitled to unlimited dividends. Robin MacKnight does not share these concerns: he appears to have no qualms about issuing such shares to the children or spouse of a medical or dental professional who practises through a professional corporation (see Robin MacKnight, “Recent Developments Concerning Professional Corporations”, a paper originally presented for the OBA PC Update II program on April 18, 2008).
Mr MacKnight also appears to be content to have such a PC issue shares to a minor. The minor can execute the various documents needed for issuing shares. It might be, however, that the minor will be entitled to repudiate the relevant agreements when he or she turns 18.
Of course, if the shares held by the minor are redeemable for a nominal amount anyway, then repudiation, or the other issues that can attend having a minor as a shareholder of a corporation, might not be a major concern.
