BVI Directors to be Held Personally Liable Breaches of Economic Substance

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Last month, the BVI government printed draft amendments to the Beneficial Ownership Secure Search System Act 2017, explaining and reinforcing BVI Directors’ duties underneath the Economic Substance (Companies and restricted Partnerships) Act 2018.

BVI Directors or company service providers neglecting to report the corporate’s ‘relevant activities’ underneath the economic substance Act without just cause will be committing an associate degree offence and will be personally liable to the company for the breaching of their fiduciary and therefore general duties; however, fines for non-compliance can fall on the corporation.