BVI Business Companies Amendment Act 2012: new powers of alternate directors

07.08.2012 Continuing the set of news devoted to the BVI Business Companies Amendment Act 2012, such novel as introducing of new powers to alternate directors should be considered. A new section 130A has been added that complements the rights and duties of alternate directors of companies. Firstly, an alternate director has the same rights as the appointing director in relation to any directors’ meeting and any written resolution circulated for written consent. Secondly, any exercise of directors’ powers by the alternate director in relation to the taking of decisions, is as effective as if the powers were exercised by the appointing director. Thirdly, an alternate director is liable for his own acts and omissions. You can also read the news of this cycle by using the following links: general article on amendments (http://hbcomp.co.uk/about/news_and_mailings/news_jurisdictions/3330/), reuse of company names (http://hbcomp.co.uk/about/news_and_mailings/news_jurisdictions/3328/), registration of an additional foreign character name (http://hbcomp.co.uk/about/news_and_mailings/news_jurisdictions/3334/), bearer shares (http://hbcomp.co.uk/about/news_and_mailings/news_jurisdictions/3332/), shares and shareholders (http://hbcomp.co.uk/about/news_and_mailings/news_jurisdictions/3338/).

Expert’s opinion

If You are willing to protect Your business, it is highly recommended to appoint an alternate director for unpredictable situations, who in case of absence of the appointing director will be able to exercise the full scope of directors’ powers which is stated in the new law. Previously, the alternate director could only participate in meetings.
Today, as we can observe from amendments, besides equating the status of the alternate director to the appointing one, the matter of liability of the alternate director for actions and omissions is also mentioned in order to avoid the abuse of powers.
Thus, the BVI legislator tries to improve the guarantees of corporate management and make it more flexible. And this amendment, undoubtedly, is directed on increasing of attractiveness of the BVI as the jurisdiction for offshore companies incorporation.
If You are interested in this jurisdiction our experts will be glad to help You with business incorporation and its further maintenance.

On the basis: http://www.bvifsc.vg/

Julia Akhmetova ( Paralegal of Moscow office of Honest & Bright Ltd)