Military Personnel Participation in Start-ups and Shareholdings

The defence sector is increasingly engaging with emerging technologies and innovative businesses, including startups developing military, cybersecurity and dual-use solutions. As a result, questions frequently arise around whether active military personnel can invest in or participate in private companies and under what conditions. 

This guide brings together insights from CMS lawyers across multiple jurisdictions. It examines three key questions: whether military personnel may hold shares in private companies, whether any notification or approval requirements apply and what conflict-of-interest or other restrictions may be relevant. While the rules differ significantly between jurisdictions, common themes include the distinction between passive investment and active involvement, disclosure obligations and the management of potential conflicts of interest.  

The guide is intended as a practical starting point for organisations, investors and military personnel navigating these issues across multiple markets. It highlights key trends and differences but should not be regarded as legal advice on any specific situation. If you have any questions about the issues covered in this guide or their application in a particular jurisdiction, please get in touch with the CMS key contacts listed for the relevant jurisdiction.