Corporate Governance In An Offshore Centre

INTRODUCTION

More is expected from directors now than in the past. Sir Howard Davies, the former head of the United Kingdoms Financial Services Authority, has said that "the Crown Dependencies [of which Guernsey forms part] continually have to go that extra mile just to prove that they are upright, honest and godly. Of course it is not fair, but it is realistic".

Directors of offshore companies should embrace the new reality for three very good reasons:

1. the profile of offshore companies has increased;
2. in order to fulfil their duties, directors need to understand the liabilities attaching to their position; and
3. potential tax consequences.

To mix metaphors: these three corners, which are all addressed below, form a virtuous circle: