Two bills were passed into law by the Nevis Island Assembly at its meeting on January 26, 2009. The bills, which include the Nevis Limited Liability Company Ordinance and the Nevis International Insurance ordinance, will strengthen the jurisdiction's offshore legislation.
Speaking after the bills' adoption, Legal Advisor to the Nevis Island Administration, Patrice Nisbett told the Department of Information that the amendments to the International Insurance Ordinance tightened some issues in the legislation surrounding reinsurance companies’ share capital.
“[The previous legislation] created certain confusion in the sector. We sought to deal with that confusion by specifically amending the section which dealt with the issue of share capital for re insurance companies, and lowered the threshold requirement from $200,000 to $75,000," he said. It is intended that the changes will ultimately make the jurisdiction more competitive.
Speaking on the amendments made to the Limited Liability Ordinance 2009, he explained what parliament sought to address: “We were putting in place a provision for a prescribed fee for persons who wish to search the register of limited liability companies. Also when foreign companies or foreign limited liability companies wish to re-domicile in the jurisdiction of Nevis, the Nevis Island Administration after consultation with the service providers came to a consensus, whereby they had indicated to us that they would wish that at least a 60-day period in terms of a certificate of good standing should be made available to the Registrar of Companies,” he said.
He said it would be mandatory for that particular company wishing to domicile in Nevis to provide the Registrar of Companies with a certification from the original jurisdiction stating that the company now wishing to re-domicile in Nevis no longer existed in that foreign jurisdiction.
The legislation put in certain prerequisites or obligations on the foreign company wishing to redomicile.
Another bill proposed recently but not yet enacted, the Nevis Business Corporation Amendment Ordinance 2009, introduces a provision that deals with the protection of minority shareholders of corporate structures.
Nibett explained: “The legislation as it stands now has no protection to deal with the issue of oppression by the majority shareholders upon minority shareholders, so in our jurisdiction we have sought to put in place a provision to deal with this eventuality. We have had a number of instances in our jurisdiction, the complaint has been made to us and we have listened, we have now drafted a provision that we feel is a balanced provision and its reflective of the situation.”
“We believe that when this piece of legislation is eventually passed it will correct the necessary defect that is existing in this particular legislation with regards to the issue of minority holders versus majority shareholders and the effect that they may have in terms of winding up and existing entity."
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