Security Interests In The BVI

All British Virgin Islands companies are governed by the provisions of the BVI Business Companies Act, 2004 (the "BCA") and are often referred to as "business companies" (a "BC").

In this briefing we discuss the creation of security interests over a BC's property. For additional information relating to the creation of security over shares in a BC, please see our briefing "BVI Shares Security."

The BCA expressly permits a BC to, by an instrument in writing, create a charge over its property.

Recognising the international nature and usage of BCs, the BCA helpfully provides that the governing law of a charge created by a BC may be the law of such jurisdiction as maybe agreed between the BC and the chargee, and that the charge shall be binding on the BC to the extent, and in accordance with, the requirements of that governing law.