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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.
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2016 Updates to BVI Business Companies Act