The British Virgin Islands has undertaken a review of its International Business Company ("IBC") legislation and the result is "The BVI Business Companies Act, 2004 (as amended)" ("the Act"). As of 1 January 2007, the Act applies to all IBCs registered in the BVI.

It is important that existing BVI IBCs and their advisors understand the provisions of the Act, which in some cases differ to the provisions of the IBC Ordinance and in many cases impose more procedural requirements for the better protection of members and creditors.

Existing IBCs may wish to consider doing nothing in which case the company will still be subject to the Act but also the transitional provisions contained in the Act (see below); file new memorandum and articles of association which comply with the Act and disapply the transitional provisions; or transfer to a different jurisdiction. Whichever of these options you decide upon, Jordans is happy to assist you.

This client briefing summarises some key changes implemented by the Act.