Anticipating And Avoiding Shareholder Disputes: A BVI Corporate Perspective

Companies incorporated in the British Virgin Islands ("BVI") have been employed as joint venture vehicles by those structuring corporate transactions in the four corners of the globe. 

It is common for each of two or more joint venture partners to hold shares in a BVI Business Company which will, in turn, either directly own an underlying asset or hold shares in a foreign subsidiary which will then own the key economic asset, often located in the jurisdiction of that subsidiary's incorporation.

In either case, the balance of decision-making power as between the board of directors and the shareholders, and the key rights of the investors (as shareholders in the BVI company) will usually be documented at the level of the BVI company.