Practically Speaking - The role of a chargee in a BVI company

In this episode, Transactional Partner Rachel Graham discusses 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

Click below to listen.

Click here to subscribe to our Practically Speaking podcast. Choose your preferred platform from the list presented and click subscribe or follow once logged in.

Harneys produces a variety of podcasts, providing on-the-go legal analysis over the airways. Visit our Podcasts page to see them all.