Buyer Beware: How to Ensure the Valid Issuance of BVI Company Shares

Subscribers for shares in a British Virgin Islands (BVI) company usually assume that such shares have been validly issued and they are quick to point to their share certificate or even the share register of the BVI company as absolute evidence of that fact.

They are often surprised to learn that the issuance of a share certificate for registered shares can be an optional step for a BVI company and further that possession of a registered share certificate does not truly indicate ownership of shares for the purposes of BVI law.

On the other hand, subscribers who point to the share register of a BVI company as evidence that they own shares are correct to do so, but such ownership may be challenged based on the facts surrounding the terms on which the shares were issued.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  BVI Business Companies, Foreign Corporations, Stocks

Published In: General Business Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Harney Westwood & Riegels | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »