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BVI law follows English common law and equity.
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There is no requirement per se for corporate benefit.
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There is statutory confirmation that a BVI company can create charges governed by any law and that such charges will be binding on the company to the extent of - and in accordance with - that governing law.
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There is statutory confirmation that a share charge over BVI shares can be governed by any law and that the remedies of the governing law will apply.
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There is a system of public registration of charges (priority is governed by the order of registration).
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Failure to register a charge does not affect its validity.
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Priority agreements are recognized by statute.
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BVI companies have statutory power to give financial assistance in connection with the acquisition of their own shares.
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The Insolvency Act 2003 is cutting edge and modern.
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Vulnerable transactions follow English insolvency law, but have considerable enhancements and appropriate safe harbours to protect arm's-length secured lending transactions.
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The BVI netting provisions, following the International Swaps and Derivatives Association Model Netting Act, validate market contract netting agreements through insolvency.
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Recent trust legislation enhances the efficacy of off-balance-sheet financing structures.
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Sealing is unnecessary for deeds.
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There is no requirement for surplus or distributable profits when paying dividends, or redeeming or buying back shares.
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Par value and par value shares are unavailable.
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Companies have no capital maintenance concerns and enjoy full flexibility when dealing with shares.
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The use of treasury shares is allowed.
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Directors' and shareholders' meetings can be held anywhere, telephone participation is catered for and written resolutions may be used.
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There is no director or shareholder residency requirement and companies may have a sole director/shareholder.
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Restricted purposes companies, which have special rules and status, are very attractive for structured finance and securitization transactions.
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It is possible to use segregated portfolio companies for certain transactions.
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It is possible to use guarantee and unlimited companies, with or without shares.
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It is possible to migrate BVI companies to other jurisdictions (and vice versa), including other offshore jurisdictions.
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Statutory mergers and court-approved arrangements provide certainty to various types of transaction.