When setting up a Guernsey fund, there are certain practical
matters to bear in mind to ensure that the establishment and
operation proceed smoothly.
THE BOARD OF DIRECTORS
Composition and conduct
The Protection of Investors (Bailiwick of Guernsey) Law, 1987,
as amended (the "POI Law"). Where the
entity is a POI Licensee, the POI Law requires each director,
controller, partner or manager of the POI Licensee to be a
"fit and proper person" to hold that position. Factors
such as his/her probity, competence, experience and judgment will
go to making this determination. The board of directors of the POI
Licensee must be comprised of at least two individuals of
appropriate standing and expertise who are sufficiently independent
of each other. The GFSC requires a board to be comprised of such
number of executive and non-executives as it considers appropriate
in the circumstances. The business must be conducted in a prudent
manner.
