BVI – “Grandfathered Bearer Shares”

Quijano & Associates informs its clients that the BVI Executive Council has issued the BVI Business Companies (Amendment of Schedules) Order 2007 which regulates the period for the transition from bearer shares to non-bearer shares of those companies organized before 1 January 2005 with the authority to issue bearer shares known as “Grandfathered Bearer Shares Companies”.

According to said Executive Order, the Memorandum and the Articles of Association (M&AA) of the Grandfathered Bearer Shares Companies shall be deemed amended to prohibit the issue of bearer shares on 31 December 2009 (the “Transition Date”), regardless of any application and/or representation, whereupon the M&AA shall be so amended unless the individual company chooses not to be affected by the deeming provision and presents a formal statement to that effect to the BVI Registry.

In addition, the Order abolishes any increase in annual fees in given stages between 2008 and the transition date.

Consequently, during the years 2008 and 2009, a Grandfathered Bearer SharesCompany will pay the same fee as a company that prohibits the issue of bearer shares. In view of this, the majority of the existing BVI companies may continue without having to do anything in respect of the transition for the time being.

Should you require any further clarification in respect of the above, or if any action is required by you in order to continue to issue bearer shares beyond 31 December 2009, please do not hesitate to contact us at quijano@quijano.com.

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