ARTICLE
19 September 2016

Five Questions Lenders Should Ask Before Contracting With BVI Counterparties

H
Harneys

Contributor

Harneys is a full-service offshore law firm offering expert legal advice on the laws of jurisdictions including the British Virgin Islands, Cayman Islands, Luxembourg, and more. Established in 1960, the firm has grown to 11 global locations with over 180 lawyers, serving top law firms, financial institutions, investment funds, and high-net-worth individuals. Harneys provides comprehensive legal support across transactional, contentious, and private client matters, often in collaboration with Harneys Fiduciary, which delivers corporate and wealth management services. Known for its role in shaping offshore jurisprudence, the firm also advises on legislative developments and excels in handling complex cross-border transactions and disputes.

Lenders of BVI contracting parties are most often concerned with whether the Company they are contracting with has the capacity to enter into the transaction
British Virgin Islands Wealth Management

Lenders of BVI contracting parties are most often concerned with whether the Company they are contracting with has the capacity to enter into the transaction. However, there are a number of other questions which a prudent lender needs to ask, and such a lender would also be wise to seek specialist BVI law advice before signing on the dotted line. The following checklist provides an excellent starting point for any lender who intends to enter into contractual arrangements with a BVI Company.

  1. Does the Company exist and is it in good standing under BVI law?
  2. What type of Company is it?
  3. Does the Company have the capacity under its M&As to enter into contractual arrangements with the Lender?
  4. Who are the Company's directors and shareholders?
  5. Has the Company been properly authorised to enter into the transaction – and does the individual purporting to act for and bind the Company have the power to do so?

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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