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Sunday, January 22, 2006

HIGHLIGHTS OF NEW BVI CORPORATE LAW

The British Virgin Islands (BVI) is a popular jurisdiction for incorporation, both for U.S. persons conducting operations abroad and as a holding company for non-U.S. persons for U.S. interests. The BVI has recently adopted a number of changes to its Company Law. Some of the major changes include:
  • New types of corporate entities, including companies limited by guarantee, segregated portfolio companies, and restricted purpose companies.
  • Now allows for no par stock.
  • Requires provisions for different classes of stock be included in the memorandum of association instead of being determined only by directors.
  • A director does not have to be appointed until the expiration of six months.
  • For a non-BVI company to be continued under BVI law, the company's existence under the non-BVI law must be terminated.

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