Isle Of Man Companies Act Comes Into Partial Effect
by Jason Gorringe, Tax-News.com, London
24 December 2003

The Companies, etc. (Amendment) Act 2003 came into partial effect last Friday after the receiving Royal Assent earlier in the month and means that unlisted companies will now be permitted to re-domicile in and out of the Isle of Man.

Whilst companies conducting licensable business, e.g. banking, investment, insurance or corporate service provider business, will be subject to additional regulatory approvals, they will also be able to re-domicile should they so wish, the Financial Services Commission said.

In addition, the Amendment ushers in a number of other provisions contained in the Act including: registration of prospectuses; the obligation to display a company’s name outside its premises; and procedures relating to a company’s ability to dispense with compliance with certain provisions of the Companies Acts.

A right of appeal against a decision of the Commission to refuse to register documents under the Business Names, Industrial and Building Societies and Limited Liability Companies Acts is also introduced.

Other provisions will facilitate the electronic filing of documents after March 1st 2004 following the introduction of the FSC’s Online Search Facility some time in the New Year.

Furthermore, from 1st March 2004, holders of corporate service providers licenses and their key staff will automatically qualify to act as secretaries of exempt companies and international companies. Other provisions correct anomalies and make minor amendments to the Companies Acts 1931 – 1993 and related legislation.

Also, with effect from 1 April 2004, no new bearer shares may be issued by Isle of Man companies and the rights relating to existing bearer shares may not be exercised until the shares are registered.

Commenting on the new rules, Jane Bates, Head of Authorisations and Companies at the FSC said: “Industry pressure has been building in relation to the extension of the re-domiciliation provisions for some time and we are delighted that the Act has received Royal Assent in time for these changes to be introduced before the end of the year.”

“A timetable for the introduction of further provisions has been drawn up and it is likely that the next measures to be enlivened will relate to dissolution of companies and to annual returns,” added Ms Bates.

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