Companies in the British Virgin Islands that have not reported particulars of their current director risk being struck off as the BVI registrar gains new powers.
BVI legislation introduced over two years ago makes it compulsory for every company registered in the country to provide details on who is the director.
Since 1 April 2016 companies are required to file particulars of their directors with the Registrar within 21 days of the appointment of their first directors.
The register of directors is not public but can be made available pursuant to a court order, or on the written request of a relevant authority acting in the exercise of its powers. Late filing fees and penalties were specified for any companies that failed to comply.
However, there are still companies that have not provided the required information. Now, authorities have decided to act.
As from 1 October, non-compliant companies will no longer be able obtain a certificate of good standing from the registrar.
If a company has still not supplied its directors’ particulars by 31 December 2018, it risks being be struck off the register. If that happens, its directors, members and any liquidators or administrators will be forbidden to act for it in any way. However, an extra measure has been introduced to ease the path to compliance.
The maximum late-filing penalty payable by a non-compliant company has been reduced from $8,000 to $5,000, according to law firm Maples and Calder.