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March 2009:
Lowering the Minimum Contractual age from 21 to 18 years old
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(I) Lowering Minimum Contractual Age with effect from 1 March 2009 With effect from 1 March 2009, the minimum age to be a director of a company or a manager of a limited liability partnership (“LLP”) will be lowered from 21 to 18 years. This means that any person who is 18 years old and above can register a business name, be a company director and form a company or LLP. Following this development, contracts entered into by a minor who has attained the age of 18 years (the “ specified minor ”) will be given the same effect as if the contracts were entered into by a person of full age. A specified minor may also bring certain legal proceedings in his own name and without a litigation representative, as if he were of full age.
(II)Exceptions
However, there are exceptions to the above. The following contracts, if entered into by a specified minor will not have effect as if he were of full age (the age of contractual capacity for these contracts continues to be 21 years):
- contracts for sale, purchase, mortgage, assignment or settlement of any land, other than a contract for a lease of land not exceeding 3 years;
- contracts for a lease of land for more than 3 years;
- contracts for sale, transfer or pledge of a minor's beneficial interest under a trust;
- contracts for settlement of any legal proceedings or action in respect of which the minor is, pursuant to any written law, considered to be a person under disability on account of his age, or of any claim from which any such legal proceedings or action may arise; and
- contracts whereby a trust is extinguished or the terms of the trust are varied.
(III)Amendments to other Statutes
With the above change, the following statutes will also be amended with effect from 1 March 2009 to facilitate specified minors engaging in certain commercial activities:
- Bills of Exchange Act
- To allow for a bill of exchange that is drawn or indorsed by a specified minor to be enforced against him.
- Companies Act
- To allow a specified minor to be a director of a company.
- Conveyancing and Law of Property Act
- To provide that a lease not exceeding three years that is executed by a specified minor as a principal will not be deemed to be a settled estate within the Settled Estates Act.
- Employment Act
- To provide that a minor below the age of 18 years is competent to enter into a contract of service and to enable a contract of service to be enforced against a specified minor.
- Limited Liability Partnerships Act
- To enable a specified minor to act as a manager of a limited
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