More on Parental Consent for Contracts

Dear Rich: In yesterday's blog, you mentioned that a parent's consent should be obtained when contracting with minors. What's the effect of a parent signing the agreement with the statement that you note? Do you think the parent's signature cuts off the minor's right to void the license agreement while still a minor? As a general rule, if a parent or guardian co-signs an agreement with a minor, the minor cannot void the agreement. That's because the parent is obligated to fulfill the contractual obligation. For that reason, assignments by a minor typically include parental consents such as this one for magazine submissions, or this one used for student entries in a contest. We caveat this by saying we have not found any cases where a minor sought to void a copyright assignment or license that was co-signed by a parent or guardian ... so we can't guarantee that a parental consent on a license will be upheld. However, by analogy, patent law does not require consent by a minor's legal representative for oaths or declarations.
Contracts that can't be voided. In some states -- for example, California and New York, certain contracts with minors (and with a parental consent) can be approved by a court thereby making it relatively bullet proof from attack by a minor. And although we didn't get into the details in our previous post, certain contracts -- whether or not a parent co-signs -- cannot be disaffirmed by a minor if they are for payment of taxes, banking agreements, military obligations, or necessities. (Also parental consents releasing a minor from injuries -- for example, a release at a ski resort -- may not always be binding on a minor.)

When Minor Children Own Stock in Small Business

Dear Rich: I own a small business. My children and I are stockholders. Since they are minor children, I presume, but am not certain, I can exercise any authority over their stockholder proxy at a corporate meeting. Does Nolo have any books are web links for information on this? This question is way far afield for the Dear Rich Staff. However, we work not far from knowledgeable corporate attorney and ultra-runner, Diana Fitzpatrick, who provided us with a helpful answer.
It all depends on how it's owned. Whether or not the parent can vote the stock held by a minor child depends on how the stock is owned or held by the minor. Minors can't purchase or open brokerage accounts because they can't enter into legally binding contracts until they reach 18 (or whatever the state law is for majority age). But they can own stock that they have received by gift or inheritance and may have all rights, including voting rights, with regard to that stock. If the minor has the voting rights then the minor could give a parent the proxy to vote those shares (provided proxy voting is allowed).
If you're in California ... If you're incorporated in California, take a look at Cal. Corporations Code Sec. 702 (d) which provides that shares standing in the name of a minor may be voted by proxy unless a guardian of the minor's property has been appointed and written notice of such appointment is given to the corporation.
Another possibility. If the stock is held in a custodial account under the Uniform Gifts to Minors Act or there is some other trust or fiduciary account set up, then the custodian or trustee or other fiduciary would have the voting rights for the stock. As you may be aware, parents often give stock to children under the Uniform Gifts to Minors Act. This allows the donor/parent to give the stock to the minor but the stock is held in a custodial account where the custodian (who can be the donor/parent) controls the account until the child reaches the age of majority. A custodian of stock held in accordance with the Act has sole voting authority over the stock held in the account.