A comprehensive report on various amendments in Business Companies Act - British Virgin Island as on 10 Oct 2012.

1. AMENDEMENT AS TO BUSINESS
COMPANIES ACT – BRITISH VIRGIN
ISLAND
Date: 10.10.2012
British Virgin Islands (BVI) is one of the most
customary and admired place for registration of the
Companies offshore. Authorities has amended
present company legislation viz. Business
Companies Act (BCA), 2004, which is going to be
effected in this month of 2012, to compete with pace
of globalisation. Said enhancement to the Companies
Act was proposed on 16th July, 2012.
Some of these amendments/ enhancements are hard-
bitten, whereas some of them are improvements over
the current regime. The Act has been amended to • Position and role of the alternate director has
introduce new measures aimed at keeping the BVI, a been enhanced by granting powers, as to
keystone corporate legislation. Following are certain sign relevant documents.
major changes enacted vide the amendment.
• The amending act also corrects a time-
• In present situation Business Companies Act, honoured typo error in the original Business
2004 is not allowing conversion of shares from Companies Act. Vide amendment the
one type to another. New provision would director may be removed by a shareholder’s
expressly allow said conversion subject to resolution passed by 75% of the votes.
fulfillment of certain conditions. Previously approval was required by 75% of
the shareholders.
• New provisions allow to re-use available name
• Framework as to use of foreign character
reserved/ used by the old Companies in
name is introduced by the amendment Act.
appropriate circumstances. This measure would
This framework would serve the purpose of
help relieving the crush on available names for
the clients operating in other markets.
BVI companies
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2. AMENDEMENT AS TO BUSINESS
COMOANIES ACT – BRITISH VIRGIN
ISLAND
• As far as liquidation of the Companies is Thank you for reading through this article.
concerned, amendment prohibits past directors
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• Amendment Act has also introduced the Listed to deliver better customer experience.
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enhance the flexibility of the BCA to slot in with Do get in touch with us; we would be delighted to
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exchanges. In addition to this Companies in form
of SPV allowed to discontinue motionless
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• Amendment has also introduced certain Contact: +91 - 9870551611
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mechanical changes to the company formation
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system, which might facilitate smoother
functioning of the company formation system. This material and the information contained herein prepared by
Hedge-Square Consultancy Services Pvt. Ltd. (HSQ), is intended to
provide general information on a particular subject or subjects and is
not an exhaustive treatment of such subject(s). None of HSQ’s
Said mechanical changes include adoption of
officials or their related entities is, by means of this material, rendering
company names, registration of security professional advice or services. The information is not intended to be
relied upon as the sole basis for any decision which may affect you or
documents, clarification on the role of the your business. Before making any decision or taking any action that
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