Introduction to the BVI Business Companies Act, - Lexology

The BVI Business Companies Act, 2004 (“BCA”) is amended

21.07.2020 03:17

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The new Act is more restrictive. It is expected that their primary use will be in structured finance and securitisation transactions. Please Select Topics. Whilst there is nothing to prevent a company from stating its objects or purposes, it is not required to do so. He is also under a statutory duty to exercise vvi powers as a director for a proper purpose and he must not act in a manner that contravenes the Act or the memorandum or articles. The acquisition of its own shares, whether under the statutory regime or in accordance with its own memorandum or articles, is treated as a distribution to members except that an acquisition is deemed not to be axt distribution where shares are redeemed pursuant the bvi business company act 2004 a right of a shareholder to have his shares redeemed. In general, the bvi business company act 2004 majority of those entitled to vote the bvi business company act 2004 voting is needed for an amendment. As with IBCs, a company can issue redeemable shares, preference shares, shares with no or only limited rights to distribution, shares with no or limited or conditional voting rights. These features will prove to be very useful for incorporation agents, particularly in Hong Kong and Asia more generally. Company names Businesx different types of companies can have different source endings. Second, there is no concept of authorised share capital for such companies, and companies authorised to issue shares must state only the maximum number of shares they are authorised to issue. Businesa company may create various of classes of shares, but the rights, privileges, restrictions and conditions attaching to each class must be specified in businesss memorandum. Under the new Act a simple majority or such higher majority as specified in acr memorandum or articles of votes of those entitled to vote and voting on the resolution is sufficient for passing a resolution at a. This web page Act retains the distinction between registered shares and bearer shares. By using our website you agree to our use of cookies as set out in our Adt Policy. Under the IBC Act, dividends could only be declared and paid out of surplus which was defined as compsny excess of the total assets over the sum of its liabilities as shown ghe the books of account and its capital. I must note however that information on both registers will only be made available to competent authorities in the execution of their duties as regulators, tax administrators or law enforcement agencies, or to other persons by Order of the Court. The decision to replace the International Business Companies Act was driven by two things.

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