New BVI Bearer Share Regime

Robert J.D. Briant, Anton Goldstein • Posted 29/10/2009 • Under Articles

There has been a great deal of attention recently surrounding the new BVI bearer share regime which comes into effect at the end of this year and which will affect shareholders in the approximately 800,000 companies in the BVI. The most significant aspect of this is that bearer shares which are not deposited with an authorised custodian as at December 31, 2009 will be "disabled" and, until they are so deposited or are otherwise exchanged for registered shares, will lose all of their rights, including the right to vote, the right to receive dividends and the right to share in the assets of a company on a liquidation.

This article outlines practical steps that can be taken by anyone who is a shareholder in a BVI company in order to ensure they do not lose their rights.