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2016 Updates to BVI Business Companies Act

In its continuing effort to keep the BVI Business Companies Act (the “Act”) at the forefront of offshore company law legislation, the BVI Government, in direct consultation with the private sector, has introduced several updates to the Act as follows:

  • To allow weighted voting by directors whereby certain directors may have more than one vote, if specifically provided for in the memorandum or articles of association of the company. While the default is one director, one vote, the flexibility of allowing this default provision to be varied may be desirable in certain types of companies, notably joint venture companies.

  • To allow shareholders to voluntary surrender their fully paid shares to the company for no consideration. While this is a somewhat unusual event, on occasion it is desirable for a shareholder to voluntarily surrender shares, notably in wholly owned companies. This change makes this action clearly permissible.

  • To allow companies to issue bonus shares as fully paid shares. While bonus shares are permitted by the Act, this amendment just clarifies that they are issued as fully paid shares.

 

To continue reading full articles in PDF format:
2016 Updates to BVI Business Companies Act

 


Robert J.D. Briant
Partner, Head of BVI Corporate

British Virgin Islands   +1 284 852 1100


Anton Goldstein
Partner

British Virgin Islands   +1 284 852 1119


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Alerts

2016 Updates to BVI Business Companies Act

In its continuing effort to keep the BVI Business Companies Act (the “Act”) at the forefront of offshore company law legislation, the BVI Government, in direct consultation with the private sector, has introduced several updates to the Act as follows:

  • To allow weighted voting by directors whereby certain directors may have more than one vote, if specifically provided for in the memorandum or articles of association of the company. While the default is one director, one vote, the flexibility of allowing this default provision to be varied may be desirable in certain types of companies, notably joint venture companies.

  • To allow shareholders to voluntary surrender their fully paid shares to the company for no consideration. While this is a somewhat unusual event, on occasion it is desirable for a shareholder to voluntarily surrender shares, notably in wholly owned companies. This change makes this action clearly permissible.

  • To allow companies to issue bonus shares as fully paid shares. While bonus shares are permitted by the Act, this amendment just clarifies that they are issued as fully paid shares.

 

To continue reading full articles in PDF format:
2016 Updates to BVI Business Companies Act

 


Robert J.D. Briant
Partner, Head of BVI Corporate

British Virgin Islands   +1 284 852 1100


Anton Goldstein
Partner

British Virgin Islands   +1 284 852 1119


 

expertise

Corporate


JURISDICTION(S)

British Virgin Islands


International Office(s)

British Virgin Islands