Government Bearer Shares Announcement

INTRODUCTION

On 30 October 2003 the British Virgin Islands' Government announced that the changes to the bearer share regime highlighted in our client advisory of May 2003 will not come into full effect for seven years.

EXISTING IBC'S

For the first four years, the situation will remain unchanged for existing international business companies. After that, for a further three years, those international business companies that retain the power to issue bearer shares would pay a small increase in their license fee.

Any international business company whether incorporated before or after the effective date of the IBC (Amendment) Act ("Act") that amended its memorandum of association to prohibit the issue of bearer shares would file at the Registry of Companies in the British Virgin Islands, together with an extract of the amendment, a declaration to the effect that no bearer shares are in