Changes in Legislation: IBC (Amendment) Act 2003
The term 'bearer shares' was not defined in the IBC act before it was introduced by the IBC (Amendment) Act 2003. According to this definition, bearer share means a share represented by a certificate which states that the bearer of the certificate is the owner of the share.
From 1 January 2006, there is a requirement for all BVI companies to be incorporated under the provisions of the BVI Business Companies Act. Under this Act, all bearer shares should be deposited with an authorised or recognised custodian. Another substantial modification is the increase of annual government fees for companies with the power to issue bearer shares. Now this fee makes US$1,100.
The improvements in the IBC Act 2003 increase bearer shares immobilisation. The Act provides that companies may continue to issue bearer shares, but now they must be placed with an Authorised or Recognised Custodian. Another option for existing companies is to exchange the bearer shares for registered and change the Memorandum and Articles of Association so that bearer shares are no longer allowed.
If shares are held with an authorised or recognised custodian, then the owner of the bearer shares must provide the custodian with the full name of the beneficial owner of the shares and the full name of any other person having an interest in the shares, or a declaration to the effect that no other person has an interest in the shares.
