Practically Speaking season two, episode four - The role of a chargee in a BVI company

In this episode, Transactional Partner Rachel Graham and Associate Adam Legge discuss the role of a chargee in relation to a BVI company. 

Key Takeaways

  • A chargee is someone who has the benefit of security that has been granted by a BVI company  
  • Numerous features make using a BVI company attractive to lenders for structuring finance transactions including: 
    • Clear and simple registration process 
    • Robust insolvency legislative regime providing protection – very similar to UK law
    • The ability for companies to provide financial assistance to those acquiring their shares 
  • The validity and effectiveness of any security document that a BVI company enters into is determined by the governing law of the particular document
  • There are two registration regimes to consider: 
    • Mandatory registration – private registration at the companies registered office, on the register of charges maintained by the registered agent
    • Public registration (optional) – where filings are made with the Registrar of Corporate Affairs in the BVI and which confers priority over any privately registered or any unregistered charge
  • Notations included in the register of members of a BVI company whose shares have been charged by way of security, provide notice of the security for those dealing with the company
  • Notice of variation or cessation of a charge can also be filed in the BVI, the variation and release of the underlying charge will be determined by the law of the charge not the filing process  

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