Try The BVI For Your Next Joint Venture

The British Virgin Islands’ Government has introduced, in its new corporate legislation, innovative new rules addressing conflicts of interest issues for directors in joint ventures.

These new rules could be particularly attractive to investors seeking maximum flexibility in structuring their joint ventures, and should lead to more joint ventures incorporating in the BVI to take advantage of them.

The problem addressed in section 120 of the new BVI Business Companies Act 2004 relates to conflicts of interest for directors in joint venture situations. It is common for the directors of a JVCo to be representatives nominated by the respective shareholders to, in effect, police their investment and look after their nominating shareholder’s interests. Of course, directors of a BVI company have the usual responsibilities to act in what they in good faith believe to be the best interests of the company, just as is the case in most