Source: https://www.global-regulation.com/law/montserrat/8167555/international-business-companies-act.html
Timestamp: 2019-08-25 17:01:34
Document Index: 81878862

Matched Legal Cases: ['art\n41', 'art 7', 'art 8', 'art 8', 'art 7', 'art—\n89', 'art.\n119']

International Business Companies Act (Montserrat)
4. Restrictions on incorporation
5. Requirements of International Business Companies
6. Effect of failure to satisfy requirement to section 5
8. Business objects or purposes
10. Validity of certain acts of company
15. Certificate of incorporation
16. Amendment of Memorandum and Articles
18. Shares to be fully paid
19. Company not to issue shares to public
20. Kind of consideration for shares
21. Amount of consideration for shares
23. Capital and surplus accounts
24. Dividend of shares
25. Increase of capital
26. Division and combination of shares
27. Character of a share
28. Share certificates
29. Share register
30. Rectification of share register
31. Transfer of registered shares
32. Seizure
33. Acquisition of own shares
34. Treasury shares disabled
35. Reduction in capital
37. Appreciation of assets
38. Transfer of bearer shares
39. Custody of bearer shares
40. Interpretation for this Part
41. Registered office
42. Registered agent
43. Change of registered office or registered agent
44. Registered agent ceasing to act for company
45. Penalty for contravention of sections 41 and 42
46. Management by directors
47. Disqualified directors
48. Election, term and removal of directors
49. Number of directors
50. Powers of directors
51. Emoluments of directors
52. Committees of directors
53. Meetings of directors
54. Notice of meetings of directors
55. Quorum for meetings of directors
56. Consents of directors
57. Alternates for directors
58. Officers and agents
59. Standard of care
60. Reliance on records and reports
61. Conflict of interests
62. Indemnification
64. Meetings of members
65. Notice of meetings of members
66. Quorum for meetings of members
67. Voting by members
68. Consents of members
69. Service of notice on members
70. Service of process, etc. on company
71. Books and records
72. Inspection of books and records
73. Contracts generally
74. Contracts before incorporation
75. Contracts for payment or transfer
76. Notes and bills of exchange
77. Power of attorney
78. Authentication or attestation
79. Company without members
80. Restraining or compliance order
81. Derivative actions
82. Costs of derivative action
83. Powers of Court where leave granted under section 81
84. Compromise, settlement or withdrawal of derivative action
85. Personal actions by shareholders
86. Prejudiced shareholders
87. Representative actions
MERGER, CONSOLIDATION, SALE OF ASSETS,
FORCED REDEMPTIONS, ARRANGEMENTS AND DISSENTERS
88. Interpretation for purposes of Part 7
89. Merger and consolidation
90. Merger with subsidiary
91. Effect of merger or consolidation
92. Merger or consolidation with foreign company
93. Disposition of assets
94. Redemption of minority shares
95. Arrangements
96. Rights of dissenters
97. Continuation
98. Provisional registration
99. Certificate of continuation
100. Effect of continuation
101. Continuation under foreign law
102. Compulsory winding-up and dissolution
103. Voluntary winding-up and dissolution
104. Powers of directors in a winding-up and dissolution
105. Duties of liquidator
106. Powers of liquidator
107. Procedure on winding-up and dissolution
108. Rescission of winding-up and dissolution
109. Winding-up and dissolution of company unable to pay its claims, etc.
110. Winding-up and dissolution by the Court
111. Receivers and managers
112. Striking-off
113. Restoration to register
114. Effect of striking-off
115. Appointment of official liquidator
116. Dissolution of company struck-off
117. Investigation order
118. Court powers
119. Inspector’s powers
120. In camera hearing
121. Incriminating evidence
122. Privilege absolute
123. Client privileges
124. Inquiries
126. Licence fees and taxation
127. Penalties to be paid to Registrar
128. Recovery of penalties, etc.
129. Company struck-off liable for fees, etc.
130. Fees, etc. to be paid into Consolidated Fund
131. Fees payable to Registrar
INCOME TAXES AND STAMP TAXES
132. Exemptions from tax, etc.
134. Form of certificate
135. Certificate of good standing
136. Inspection of documents
137. Jurisdiction
138. Declaration by Court
139. Judge in Chambers
140. Confidential Information Act
(Acts 19 of 1985, 6 of 1992, 10 of 2002 and 9 of 2011)
AN ACT TO MAKE PROVISION FOR THE INCORPORATION AND OPERATION OF
INTERNATIONAL BUSINESS COMPANIES AND RELATED MATTERS.
[26 August 1986]
“bearer share” means a share in the capital of any company incorporated in Montserrat which—
(a) is represented by a certificate that does not record the owner’s name; and
(b) is transferable by delivery of the certificate; (Inserted by Act 10 of 2002)
“capital” of a company means the sum of the aggregate par value of all outstanding shares with par value of the company and shares with par value held by the company as treasury shares plus—
“Commission” means the Financial Services Commission established under the Financial Services Commission Act; (Inserted by Act 10 of 2002)
“Companies Act” means the Companies Act of Montserrat;
“continued” means continued within the context of Part 8;
“Court” means the High Court of Montserrat or a Judge thereof;
“custodian” means a person licensed under the Company Management Act or the Banking Act who, in either case, is authorised by the Commission to act as a custodian of bearer shares; (Inserted by Act 10 of 2002)
“effective date” means the date on which the International Business Companies (Amendment) Act 2002
 comes into effect; (Inserted by
Act 10 of 2002)
“person” includes a trust, the estate of a deceased individual, a partnership, or an unincorporated association of persons;
“person resident in Montserrat” means a person who ordinarily resides within Montserrat or carries on business from an office or other fixed place of business within Montserrat;
“Register” means the Register of International Business Companies maintained by the Registrar in accordance with section 14(1);
“Registrar” means, notwithstanding anything in the Interpretation Act or in the Companies Act or in the Registration of Records Act or in any other written law the Registrar of Offshore Companies; (Amended by Act 6 of 1992)
(a) a resolution approved at a duly constituted meeting of directors or of a committee of directors of a company, by the affirmative vote of a simple majority, or such larger majority as may be specified in the Articles, of the directors present who voted and did not abstain; or
(b) a resolution consented to by an absolute majority, or such larger majority as may be specified in the Articles, of all
 The International Business Companies (Amendment) Act 2002 came into force on 11
February, 2003 – S.R.O. 27/2003.
directors or of all members of the committee, as the case may be;
“resolution of members” means—
(a) a resolution approved at a properly constituted meeting of the members of a company by the affirmative vote of—
(i) a simple majority, or such larger majority as may be specified in the Articles, of the votes of the shares which were present at the meeting and were voted and not abstained; or
(ii) a simple majority, or such larger majority as may be specified in the Articles, of the votes of each class or series of shares which were present at the meeting and entitled to vote as a class or series and were voted and not abstained and of a simple majority, or such larger majority as may be specified in the Articles, of the votes of the remaining shares present at the meeting and were voted and not abstained; or
(b) a resolution consented to by—
(i) an absolute majority, or such larger majority as may be specified in the Articles, of the votes of shares entitled to vote thereon; or
(ii) an absolute majority, or such larger majority as may be specified in the Articles, of the votes of each class or series of shares entitled to vote as a class or series and of an absolute majority or such larger majority as may be specified in the Articles, of the votes of the remaining shares entitled to vote thereon;
“securities” means shares and debt obligations of every kind, and options, warrants and rights to acquire shares or debt obligations;
“surplus” in relation to a company, means the excess, if any, at the time of the determination, of the total assets of the company over the sum of its total liabilities, as shown in the books of account, plus its capital;
(2) A reference to money in this Act is a reference to the currency of the United States of America.
(3) A company that is incorporated under the Companies Act or under the laws of a jurisdiction outside Montserrat shall be a company incorporated under this Act if it is continued as a company incorporated under this Act in accordance with Part 8 and reference in this Act to a “company” incorporated under this Act shall be construed accordingly.
(4) A reference in this Act to voting in relation to shares shall be construed as a reference to voting by members holding the shares except that it is the votes allocated to the shares that shall be counted and not the number of members who actually voted and a reference to shares being present at a meeting shall be given a corresponding construction.
3. Subject to the requirements of this Act, any person may singly or jointly with others, by subscribing to a Memorandum and to Articles, incorporate a company under this Act.
4. No company shall be incorporated under this Act unless immediately upon its incorporation the company is an International Business Company.
Requirements of International Business Companies
5. (1) For the purposes of this Act, an International Business Company is a company that does not—
(a) carry on business with persons resident in Montserrat;
(b) own an interest in real property situated in Montserrat, other than a lease referred to in subsection (2)(e);
(c) accept banking deposits from persons resident in Montserrat;
(d) accept contracts of insurance from persons resident in Montserrat.
(2) For the purposes of subsection (1)(a), an International Business Company shall not be treated as carrying on business with persons resident in Montserrat if—
(a) it makes or maintains deposits with a person carrying on business within Montserrat;
(b) it makes or maintains professional contact with solicitors, barristers, accountants, bookkeepers, trust companies, administration companies, investment advisers or other similar persons carrying on business within Montserrat;
(c) it prepares or maintains books and records within Montserrat;
(d) it holds, within Montserrat, meetings of its directors or members;
(f) it holds shares, debt obligations or other securities in a company incorporated under this Act or under the Companies Act; or
(g) shares, debt obligations or other securities in the company are owned by any person resident in Montserrat or by any company incorporated under this Act or under the Companies Act.
Effect of failure to satisfy requirement to section 5
6. (1) Without affecting the operation of section 112, if a company is incorporated under this Act without having satisfied the requirements prescribed for an International Business Company under section 5, or if having satisfied the requirements it subsequently ceases to satisfy the requirements for a continuous period of more than thirty days, the company shall upon expiration of that period notify the Registrar of that fact.
(2) A company that wilfully contravenes subsection (1) is liable to a penalty of $100 for each day or part thereof during which the contravention continues, and a director who knowingly permits the contravention is liable to a like penalty.
7. Subject to section 79, no member, director, officer, agent or liquidator of a company incorporated under this Act is liable for any debt, obligation or default of the company, unless specifically provided in this Act or in any other law for the time being in force in Montserrat, and except in so far as he may be liable for his own conduct or acts.
8. A company may be incorporated under this Act for any object or purpose not prohibited under this Act or under any other law for the time being in force in Montserrat.
9. (1) Subject to any limitations in its Memorandum or Articles, this Act or any other law for the time being in force in Montserrat, a company incorporated under this Act has the power, irrespective of corporate benefit, to perform all acts and engage in all activities necessary or conducive to the conduct, promotion or attainment of the objects or purposes of the company, including the power to do the following—
(a) issue registered bearer shares or both; (Amended by Act 10 of 2002)
(b) issue the following—
(c) issue common shares, preferred shares or redeemable shares;
(f) issue securities that, at the option of the holder thereof or of the company or upon the happening of a specified event, are convertible into, or exchangeable for, other securities in the company or any property then or to be owned by the company;
(2) For purposes of subsection (1)(i), notwithstanding any other provision of this Act or of any other law for the time being in force in Montserrat, or any rule of law to the contrary, the directors may cause the company to transfer any of its assets in trust to one or more trustees, to any company, association, partnership, foundation or similar entity, and with respect to the transfer, the directors may provide that the company, its creditors, its members or any person having a direct or indirect interest in the company, or any of them, may be the beneficiaries, creditors, members, certificate holders, partners or holders of any other similar interest.
(3) The rights or interests of any existing or subsequent creditor of the company in any assets of the company are not affected by any transfer under subsection (2), and those rights or interests may be pleaded against any transferee in any such transfer.
Validity of certain acts of company
10. (1) No act of a company incorporated under this Act and no transfer of real or personal property by or to a company so incorporated is invalid by reason only of the fact that the company was without capacity or power to perform the act, or to transfer or receive the property, but the lack of capacity or power may be pleaded in the following cases—
(a) in proceedings by a member against the company to prohibit the doing of any act or the transfer of real or personal property by or to the company; or
(b) in proceedings by the company, whether acting directly or through a receiver, trustee, or other legal representative, or through members in a derivative action, against the incumbent or former directors of the company for loss or damage due to their unauthorised act.
(2) For the purposes of subsection (1)(a), the Court may set aside and prohibit the performance of a contract if—
(c) it appears fair and reasonable to set aside or prohibit the performance of the contract,
and in so doing the Court may, in applying this subsection, award to the company or to the other parties to the contract such compensation as may be reasonable except that in determining the amount of compensation the Court shall not take into account anticipation profits to be derived from the performance of the contract.
11. (1) The word “Limited” or “Corporation” or “Incorporated” or the abbreviation “Ltd.” or “Corp.” or “Inc.” or such other word or abbreviation as is used and recognised in another country to denote that the liability of the shareholders of a body corporate is limited, must form part of the name of every company incorporated under this Act.
(2) No company shall be incorporated under this Act under a name that—
(a) is identical with that under which a company in existence is already incorporated under this Act or under the Companies Act or so nearly resembles the name as to be calculated to deceive, except where the company in existence gives its consent; or
(b) contains the words “Bank”, “Building Society”, “Chamber of Commerce”, “Chartered”, “Cooperative”, “Imperial”, “Municipal”, “Royal” or a word conveying a similar meaning, or any other word that, in the opinion of the Registrar, suggests or is calculated to suggest—
(ii) a connection with Her Majesty’s Government or a department thereof; or
(iii) a connection with a municipality or other local authority or with a society or body incorporated by Royal Charter.
(4) If a company is incorporated under a name that—
(a) is identical with a name under which a company in existence was incorporated under this Act or under the Companies Act; or
(b) so nearly resembles the name as to be calculated to deceive,
the Registrar may give notice to the last registered company to change its name and if it fails to do so within sixty days from the date of the notice, the Registrar must amend the Memorandum of the company to change its name to such name as the Registrar deems appropriate, and the Registrar must publish notice of the change in the Gazette.
(5) Where a company changes its name, the Registrar must enter the new name on the Register in place of the former name, and must issue within three working days, a certificate of incorporation indicating the change of name.
(6) A change of name does not affect any rights or obligations of a company, or render defective any legal proceedings by or against a company, and all legal proceedings that have been commenced against a company by its former name may be continued against it by its new name.
(7) The Registrar may, upon a request made by any person, reserve for one year, a name for future adoption by a company under this Act.
12. (1) The Memorandum must include—
(b) the address within Montserrat of the registered office of the company;
(c) the name and address within Montserrat of the registered agent of the company;
(h) a statement of the designations, powers, preferences and rights, and the qualifications, limitations or restrictions of each class and series of shares that the company is authorised to issue, unless the directors are to be authorised to fix any such designations, powers, preferences, rights, qualifications, limitations and restrictions, and in that case, an express grant of such authority as may be desired to grant to the directors to fix by a resolution any such designations, powers, preferences, rights, qualifications, limitations and restrictions that have not been fixed by the Memorandum;
(i) the number of bearer shares as registered shares and the number of bearer shares as bearer shares;
(2) For the purposes of subsection (1)(d), if the Memorandum contains a statement either alone or with other objects or purposes that the purpose of the company is to engage in any act or activity that is not prohibited under any law for the time being in force in Montserrat, the effect of such a statement is to make all acts and activities that are not illegal part of the objects or purposes of the company, subject to any limitations in the Memorandum.
(3) The Memorandum must be signed by each subscriber in the presence of a person who must sign his name as a witness.
(4) The Memorandum, when registered, binds the company and its members from time to time to the same extent as if each member had subscribed his name and affixed his seal thereto and as if there were contained in the Memorandum, on the part of himself, his heirs, executors
and administrators, a covenant to observe the provisions of the Memorandum, subject to this Act.
(Amended by Act 10 of 2002)
13. (1) The Memorandum, when submitted for registration must be accompanied by Articles prescribing regulations for the company.
(2) The Articles must be signed by each subscriber in the presence of a person who must sign his name as a witness.
(3) The Articles, when registered, bind the company and its members from time to time to the same extent as if each member had subscribed his name and affixed his seal thereto and as if there were contained in the Articles, on the part of himself, his heirs, executors and administrators, a covenant to observe provisions of the Articles, subject to this Act.
14. (1) The Memorandum and the Articles must be submitted to the Registrar, who must retain and register them in a Register to be maintained by him and to be known as the Register of International Business Companies.
(2) Upon the registration of the Memorandum and Articles, the Registrar shall within three working days following such registration issue a certificate of incorporation under his hand and seal certifying that the company is incorporated.
15. (1) Upon the issue by the Registrar of a certificate of incorporation of a company, the company is, from the date shown on the certificate of incorporation, a body corporate under the name contained in the Memorandum.
(2) A certificate of incorporation of a company incorporated under this Act issued by the Registrar is prima facie evidence of compliance with all requirements of this Act in respect of incorporation.
16. (1) A company incorporated under this Act may amend its Memorandum or Articles by a resolution of members or, where permitted by its Memorandum or Articles or by this Act, by a resolution of directors.
(2) A company that amends its Memorandum or Articles must within fourteen days submit the amendment to the Registrar and the Registrar must retain and register the amendment in the Register.
(3) An amendment to the Memorandum or Articles has effect from the time the amendment is registered by the Registrar.
(4) A company that wilfully contravenes subsection (2) is liable to a penalty of $50 for each day or part thereof during which the contravention continues, and a director who knowingly permits the contravention is liable to a like penalty.
17. A copy of the Memorandum and a copy of the Articles must be given to any member who requests a copy on payment by the member of such amount as the directors may determine to be reasonably necessary to defray the costs of preparing and furnishing them.
18. No share in a company incorporated under this Act may be issued until the consideration in respect of the share is fully paid, and when issued the share is for all purposes fully paid and non-assessable.
Company not to issue shares to public
19. (1) A company shall not—
(a) offer to the public, whether for cash or otherwise, any securities of the company; or
(b) allot or agree to allot, whether for cash or otherwise, any securities of the company with a view to all or any of those securities being offered for sale to the public,
unless the offer is of a category exempted from the provisions of this section by regulations made under subsection (3).
(2) For the purposes of subsection (1), an offer is deemed to be made to the public if it is made to any section of the public, whether selected—
(a) as shareholders or holders of securities in a body corporate;
(3) The Governor acting on the advice of Cabinet may make regulations exempting categories of offer from the provisions of this section. (Amended by Act 9 of 2011)
(4) A company that contravenes subsection (1) commits an offence. (Inserted by Act 10 of 2002)
21 (1) Subject to any limitations in the Memorandum or Articles, shares in a company incorporated under this Act may be issued for such amount as may be determined from time to time by the directors, except that in the case of shares with par value, the amount shall not be less than the par value; and, in the absence of fraud, the decision of the directors as to the value of the realizable assets of the company is conclusive, unless a question of law is involved.
22. Subject to any limitations in its Memorandum or Articles, a company incorporated under this Act may issue fractions of a share and unless and to the extent otherwise provided in the Memorandum or Articles, a fractional share has the corresponding fractional liabilities, limitations, preferences, privileges, qualifications, restrictions, rights and other attributes of a whole share of the same class or series of shares.
23. (1) Upon the issue by a company incorporated under this Act of a share with par value, the consideration in respect of the share constitutes capital to the extent of the par value and the excess constitutes surplus.
(2) Subject to any limitations in the Memorandum or Articles, upon the issue by a company incorporated under this Act of a share without par value, the consideration in respect of the share constitutes capital to the extent designated by the directors and the excess constitutes surplus, except that the directors must designate as capital an amount of the consideration that is at least equal to the amount that the share is entitled to as a
preference, if any, in the assets of the company upon liquidation of the company.
(3) Upon the disposition by a company incorporated under this Act of a treasury share, the consideration in respect of the share is added to surplus.
24. (1) A share issued as a dividend by a company incorporated under this Act shall be treated for all purposes as having been issued for money equal to the surplus that is transferred to capital upon the issue of the share.
25. (1) A company incorporated under this Act may amend its Memorandum to increase its authorised capital.
(2) Subject to any limitations in the Memorandum or Articles, the capital of a company incorporated under this Act may, by a resolution of directors, be increased by transferring an amount of the surplus of the company to capital.
26. (1) A company incorporated under this Act may amend its Memorandum—
(2) Where shares are dividend or combined under subsection (1), shares with par value have a proportionately smaller or greater par value, as the case may be.
28. (1) A company incorporated under this Act must state in its Articles whether or not certificates in respect of its shares shall be issued.
(2) If a company incorporated under this Act issues certificates in respect of its shares, the certificates—
(b) must be under the common seal of the company, with or without the signature of any director or officer of the company,
29. (1) A company incorporated under this Act shall cause to be kept one or more registers to be known as share registers containing—
(e) in the case of bearer shares, the total number of each class and series of bearer shares; and
(f) with respect to each certificate for bearer shares—
(ii) the number of each class or series of bearer shares specified therein;
(iii) the date of issue of the certificate; and
(iv) the name of the custodian of the bearer shares,
but the company may delete from the register information relating to persons who are no longer members of information relating to bearer shares that have been cancelled. (Amended by Act 10 of 2002)
(2) The share register may be in any such form as the directors may approve but if it is in magnetic, electronic or other data storage form, the company must be able to produce legible evidence of its contents.
(4) A copy of the share register, commencing from the date of the registration of the company, shall be kept at the registered office of the company referred to in section 41.
(5) The share register is prima facie evidence of any matters directed or authorised by this Act to be contained therein.
(6) A company that wilfully contravenes this section is liable to a penalty of $25 for each day or part thereof during which the contravention continues, and a director who knowingly permits the contravention is liable to a like penalty.
30. (1) If—
a member of the company, or any person who is aggrieved by the omission, inaccuracy or delay, may apply to the Court for an order that the share register be rectified, and the Court may either grant or refuse the application, with or without costs to be paid by the applicant, or order the rectification of the share register, and may direct the company to pay all costs of the application and any damages the applicant may have sustained.
(2) The Court may, in any proceedings under subsection (1), determine any question relating to the right of a person who is a party to the proceedings to have his name entered in or omitted from the share register, whether the question arises between—
31. (1) Subject to any limitations in the Memorandum or Articles, registered shares of a company incorporated under this Act may be transferred by a written instrument of transfer signed by the transferor and containing the name and address of the transferee.
(4) Subject to any limitations in its Memorandum or Articles, a company incorporated under this Act must, on the application of the transferor or transferee of a registered share in the company, enter in its share register the name of the transferee of the share.
(5) A transfer of registered shares of a deceased, incompetent or bankrupt member of a company incorporated under this Act made by his personal representative, guardian or trustee, as the case may be, or a transfer of registered shares owned by a person as a result of a transfer from a member by operation of law, is of the same validity as if the personal representative, guardian, trustee or transferee had been the registered holder of the shares at the time of the execution of the instrument of transfer.
(6) For the purposes of subsection (5), what amounts to incompetence on the part of a person is a matter to be determined by the Court after having regard to all the relevant evidence and the circumstances of the case.
32. (1) Where a governmental authority, whether it is legally constituted or not, in any jurisdiction outside Montserrat—
(a) by or in connection with any nationalization, expropriation, confiscation, coercion, force or duress, or similar action; or
takes or seizes any shares or other interest in a company incorporated under this Act, the company itself or a person holding shares or any other interest therein, including an interest as a creditor, may apply to the Court for an order that the company disregard the taking or seizure and continue to treat the person who would have held shares or any other interest in the company
but for the taking or seizure of the shares or other interest as continuing to hold the shares or other interest.
(3) The Court may, upon application made to it under subsection (1) and (2)—
(b) order that any shares of or other interests in the company vest in such trustees as the Court may appoint upon such trusts and for such purposes as the Court determines.
33. (1) Subject to any limitations in its Memorandum or Articles, a company incorporated under this Act may purchase, redeem or otherwise acquire and hold its own shares.
(b) the realizable value of the assets of the company will not be less than the sum of its total liabilities, other than deferred taxes, as shown in the books of account, and, its capital,
and, in the absence of fraud, the decision of the directors as to the value of the realizable assets of the company is conclusive, unless a question of law is involved.
(3) Notwithstanding subsection (2), a company may purchase or otherwise acquire its own shares—
(c) by virtue of the provisions of section 97; and
(4) Subject to any limitations in the Memorandum or Articles, shares that a company purchases, redeems or otherwise acquires may be cancelled or held as treasury shares unless the shares are purchased, redeemed or otherwise acquired out of capital pursuant to section 35, in which case they shall be cancelled but they shall be available for reissue; and upon the cancellation of a share, the amount included as capital of the company with respect to that share shall be deducted from the capital of the company.
34. Where shares in a company incorporated under the Act—
(b) are held by another company of which the first company holds, directly or indirectly, shares having more than 50% of the votes in the election of directors of the other company,
those shares are not entitled to vote or to have dividends paid thereon and shall not be treated as outstanding for any purpose under this Act except for the purpose of determining the capital of the first company.
35. (1) Subject to any limitations in the Memorandum or Articles and subject to subsection (2), the capital of a company incorporated under this Act may, by a resolution of directors, be reduced and in connection therewith, the company may, by a resolution of directors—
(a) amend its Memorandum to reduce its authorised capital and in connection therewith reduce the par value of any of its shares;
(b) return to members any amount received by the company upon the issue of any of its shares;
(c) purchase, redeem or otherwise acquire its shares out of capital;
(d) transfer any amount from capital to surplus; or
(e) cancel any capital that is lost or not represented by assets having a realizable value.
(2) No reduction of capital shall be effected that reduces the authorised capital of the company to an amount that is less than the sum of—
(3) No reduction of authorised capital shall be effected under subsection (1) unless the directors determine that immediately after the reduction—
(b) the realizable value of the assets of the company will not be less than its total liabilities, other than deferred taxes, as shown in the books of account, and its remaining capital,
(b) the realizable value of the assets of the company will not be less than the sum of its total liabilities, other than deferred taxes, as shown in the books of account and its capital,
37. Subject to any limitations in its Memorandum or Articles a company incorporated under this Act may, by a resolution of directors, include in the computation of surplus for any purpose under this Act the net unrealized appreciation of the assets of the company, and, in the absence of fraud, the decision of the directors is conclusive, unless a question of law is involved.
38. (1) A company shall not issue bearer shares to any person other than a custodian.
(2) Except where bearer shares in a company are being redeemed by the company or the shareholder holding bearer shares in the company is seeking to convert those shares into registered shares, that shareholder shall not transfer those shares to any person other than a custodian or otherwise dispose of or deal in those shares unless the shareholder is disposing of those shares to, or dealing in those shares with, a custodian.
(3) In subsection (2) the reference to bearer shares being transferred, disposed of, or dealt with means the transfer or disposal of, or dealing with, the legal interest in the shares.
(4) Where bearer shares are held by a custodian, a person holding the beneficial interest in those bearer shares shall not agree to transfer or otherwise dispose of or deal in the interest in those shares without the approval of the custodian; and where that person transfers the beneficial interest in those bearer shares without such approval that transfer shall be ineffective until the custodian has granted its approval.
(5) Where bearer shares have been delivered to a person other than a custodian, that person shall, within sixty days, deliver the shares to a custodian; and if the bearer shares are not deposited with a custodian within sixty days then the shares shall be null and void for all purposes under this Act.
(6) Notwithstanding subsection (5), the holder of a bearer share which has been deemed null and void in accordance with that subsection may, within three years of the share becoming null and void, apply to the Court for the share to be restored; and the Court may make such order as it considers reasonable in the circumstances.
(7) Where the Court has ordered that a bearer share be restored in accordance with subsection (6), the rights under the share shall only be fully restored when the share has been deposited with a custodian.
(8) Bearer shares shall be transferred by the custodian only into the custody of another custodian unless the shares are to be redeemed by the company or converted into registered shares.
(9) Where a company deals with bearer shares contrary to subsection (8), then the company and every director and officer of the company who is responsible for the contravention is guilty of an offence and liable on summary conviction to a fine of $10,000.
(10) An authorised custodian who transfers a bearer share into the custody of any person contrary to subsection (9) is guilty of an offence and liable on summary conviction to a fine of $25,000.
(11) A shareholder who knowingly transfers ownership of a bearer share contrary to subsection (2) is guilty of an offence and liable on summary conviction to a fine of $10,000.
(Inserted by Act 10 of 2002)
39. (1) A company shall ensure that its bearer shares are deposited with a custodian within twelve months of the effective date.
(2) A company may apply in writing to the Commission for an extension of the period specified under subsection (1), and such application shall be accompanied by—
(a) a statement of the reasons for the extension;
(c) such other information as the Registrar considers necessary,
and the Registrar may extend the period by a further period of up to twelve months.
(3) If the bearer shares of a company are not deposited with a custodian within the period specified under subsection (1) or any extension of that period granted under subsection (2), then the shares shall be null and void for all purposes under the Law.
(4) Notwithstanding subsection (3), the holder of a bearer share which has been deemed null and void in accordance with subsection (3) may, within three years of the share becoming null and void, petition the Court for the share to be restored; and the Court may make such order as it considers reasonable in the circumstances.
(5) Where the Court has ordered that a bearer share be restored in accordance with subsection (4), the rights under the share shall only be fully restored when the share has been deposited with a custodian.
(6) Where a custodian (“the former custodian”) for any reason refuses or is unable to act as custodian, it shall give the beneficial owners of the bearer shares, the company which has issued the bearer shares and the Commission not less than sixty days notice of its intention to terminate its services, and the custodian shall provide the beneficial owners with a list consisting of not less than five names of persons who may provide the services of custodian.
(7) Where a beneficial owner of bearer shares refuses or fails within sixty days of receiving a notice under subsection (6) to direct the former custodian to deposit the bearer shares into the custody of a new custodian, the former custodian may provide the company with the name and address of the beneficial owner and instruct the company to register the bearer
shares in the name of that beneficial owner, or in the case of a minor, the name of the guardian of the beneficial owner, and the former custodian shall inform the Authority of its direction to the company under this section.
(8) The company shall, within thirty days of receiving the instruction under subsection (5), register the shares and notify the custodian and the owner of the shares that it has done so.
40. In this Part, “qualifying licence” means a licence issued under the Company Management Act.
41. (1) A company incorporated under this Act shall at all times have a registered office in Montserrat.
(2) The registered office of a company must be provided by a person who holds a qualifying licence.
(3) If the person providing the registered office for a company ceases to hold a qualifying licence, the company shall, within fourteen days of becoming aware that the person concerned has ceased to hold a qualifying licence, change the location of its registered office so that it is provided by a person who holds a qualifying licence.
(5) If a person providing the registered office of a company ceases to hold a licence, he does not commit an offence under section 4 of the Company Management Act in respect of the company if, upon ceasing to hold the licence, he forthwith notifies the company that he no longer holds a qualifying licence and that the company must change the situation of its registered office in accordance with subsection (3).
42. (1) A company incorporated under this Act shall at all times have a registered agent in Montserrat.
(2) The registered agent of a company must be a person who holds a qualifying licence.
(3) If the registered agent of a company ceases to hold a qualifying licence, the company shall, within fourteen days of becoming aware that the person concerned has ceased to hold a qualifying licence, change its registered agent to a person who holds a qualifying licence.
(5) If a person acting as the registered agent of a company ceases to hold a licence, he does not commit an offence under section 4 of the Company Management Act in respect of the company if, upon ceasing to hold the licence, he forthwith notifies the company that he no longer holds a qualifying licence and that the company must change its registered agent in accordance with subsection (3).
43. A company incorporated under this Act may, by resolution of its directors, change the location of its registered office or change its registered agent and within thirty days of so doing must notify the Registrar in writing as to the address of its new registered agent as the case may be.
44. (1) If the registered agent of a company desires to cease to act as its registered agent, he must give not less than thirty days written notice of his intention to do so in accordance with subsection (2).
(3) The registered agent must, within seven days of sending a notice in accordance with subsection (2), file a copy of the notice with the Registrar.
(4) If, at the time of expiry of the notice given under subsection (1), the company has not filed a notice of change of registered agent under section 43, the Registrar shall publish a notice in the Gazette that, unless the company files notice of a change of registered agent within thirty days of the date of the publication of the notice in the Gazette, it will be struck off the Register and dissolved.
(5) If a company fails to file a notice of change of registered agent within thirty days of publication of a notice in the Gazette under subsection (4), the Registrar must strike the company off the register of international companies whereupon it is dissolved; the Registrar must publish a notice of the striking-off and dissolution of a company under this section in the Gazette.
Penalty for contravention of sections 41 and 42
45. A company that wilfully contravenes sections 41 or 42 is liable to a penalty of $25 for each day or part thereof during which the contravention continues, and a director who knowingly permits the contravention is liable to a like penalty.
46. The business and affairs of a company incorporated under this Act shall be managed by a board of directors that consists of one or more persons who may be individuals or companies.
47. (1) An individual against whom a disqualification order is made under section 67 of the Companies Act, may not during the period of his disqualification be a director of, or be concerned in the management of, a company incorporated or continued under this Act.
48. (1) The first directors of a company incorporated under this Act shall be elected by the subscribers to the Memorandum; and thereafter, the directors shall be elected by the members for such term as the members may determine.
(3) Subject to any limitations in the Memorandum or Articles—
(b) a director may resign his office by giving written notice of his resignation to the company and the resignation has effect
from the date the notice is received by the company or from such later date as may be specified in the notice.
(4) Subject to any limitations in the Memorandum or Articles, a vacancy in the board of directors may be filled by a resolution of members or a resolution of directors.
49. The number of directors shall be fixed by the Articles and, subject to any limitations in the Memorandum or Articles, the Articles may be amended to change the number of directors.
50. The directors have all the powers of the company that are not reserved to the members under this Act or in the Memorandum or Articles.
51. Subject to any limitations in the Memorandum or Articles, the directors may, by a resolution of directors, fix the emoluments of directors in respect of services to be rendered in any capacity to the company.
52. (1) The directors may, by a resolution of directors, designate one or more committees, each consisting of one or more directors.
(2) Subject to any limitations in the Memorandum or Articles, each committee has such powers and authority of the directors, including the power and authority to affix the common seal of the company, as are set forth in the resolution of directors establishing the committee, except that no committee has any power or authority with respect to the matters requiring a resolution of directors under sections 48 and 58.
53. (1) Subject to any limitations in the Memorandum or Articles, the directors of a company incorporated under this Act may meet at such times and in such manner and places within or outside Montserrat as the directors may determine to be necessary or desirable.
(2) A director shall be deemed to be present at a meeting of directors if—
54. (1) Subject to a requirement in the Memorandum or Articles to give longer notice, a director shall be given not less than seven days notice of meetings of directors.
(2) Notwithstanding subsection (1), subject to any limitations in the Memorandum or Articles, a meeting of directors held in contravention of that subsection is valid if a majority of the directors entitled to vote at the meeting have waived the notice of the meeting.
55. A meeting of directors is duly constituted for all purposes if at the commencement of the meeting there are present in person or by alternate 1/3, or such larger proportion as may be specified in the Memorandum or Articles, of the total number of directors.
56. Subject to any limitations in the Memorandum or Articles, an action that may be taken by the directors or a committee of directors at a meeting may also be taken by a resolution of directors or a committee of directors consented to in writing or by telex, telegram, cable or other written electronic communication, without the need for any notice.
57. (1) Subject to any limitations in the Memorandum or Articles, a director may by a written instrument appoint an alternate who need not be a director.
(2) An alternate for a director appointed under subsection (1) is entitled to attend meetings in the absence of the director who appointed him and to vote or consent in the place of the director and the alternate has all powers and authority of the director.
58. (1) The directors may, by a resolution of directors, appoint any person, including a person who is a director, to be an officer or agent of the company.
(2) Subject to any limitations in the Memorandum or Articles, each officer or agent has such powers and authority of the directors including the power and authority to affix the common seal of the company, as are set forth in the Articles or in the resolution of directors appointing the officer or agent, except that no officer or agent has any power or authority with
respect to the matters requiring a resolution of directors under section 48 and this section.
59. (1) Every director, officer, agent and liquidator of a company incorporated under this Act, in performing his functions, shall act honestly and in good faith with a view to the best interests of the company and exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.
60. Every director, officer, agent and liquidator of a company incorporated under this Act, in performing his functions, is entitled to rely upon the share register kept under section 29, the books of accounts and records and the minutes and copies of consents to resolutions kept under section 71 and any report made to the company by any other director, officer, agent or liquidator or by any person selected by the company to make the report.
61. (1) Subject to any limitations in the Memorandum or Articles, if the requirements of subsection (2) or (3) are satisfied, no agreement or transaction between—
(4) Subject to any limitations in the Memorandum or Articles, a director or liquidator who has an interest in any particular business to be considered at a meeting of directors or liquidators may be counted for purposes of determining whether the meeting is duly constituted under section 55 or otherwise.
62. (1) Subject to subsection (2) and any limitations in its Memorandum or Articles, a company incorporated under this Act may indemnify against all expenses, including legal fees, and against all judgements, fines and amounts paid in settlement and reasonably incurred in connection with legal proceedings any person who—
(a) is or was a party or is threatened to be made a party to any threatened, pending or completed proceedings, whether civil, criminal, administrative or investigative, by reason of the fact that the person is or was a director, officer or liquidator of the company; or
(3) The decision of the directors as to whether the person acted honestly and in good faith and with a view to the best interests of the company and as to whether the person had no reasonable cause to believe that his conduct was unlawful is sufficient for the purposes of this section.
(4) The termination of any proceedings by any judgement, order, settlement, conviction or the entering of a nolle prosequi does not, by itself create a presumption that the person did not act honestly and in good faith and with a view to the best interests of the company or that the person had reasonable cause to believe that his conduct was unlawful.
(5) If a person referred to in subsection (1) has been successful in defense of any proceedings referred to in subsection (1), the person is entitled to be indemnified against all expenses, including legal fees, and against all judgements, fines and amounts paid in settlement and reasonably incurred by the person in connection with the proceedings.
63. A company incorporated under this Act may purchase and maintain insurance in relation to any person who is or was a director, officer or liquidator or the company, or who at the request of the company is or was serving as a director, officer or liquidator of, or in any other capacity is or was acting for, another company or a partnership, joint venture, trust or other enterprise, against any liability asserted against the person and incurred by the person in that capacity, whether or not the company has or would have had the power to indemnify the person against the liability under section 62(1).
64. (1) Subject to any limitations in the Memorandum or Articles, the directors of a company incorporated under this Act may convene meetings of the members of the company at such times and in such manner and places within or outside Montserrat as the directors consider necessary or desirable.
(2) Subject to a provision in the Memorandum or Articles for a lesser percentage, upon the written request of members holding more than 50% of the votes of the outstanding voting shares in the company, the directors shall convene a meeting of members.
(3) Subject to any limitations in the Memorandum or Articles, a member shall be deemed to be present at a meeting of members if—
(6) (a) When a body corporate or an unincorporated association of persons is a shareholder of a company incorporated under this Act, the company must recognize any natural person authorised by resolution of the directors or governing body of that body corporate or association to represent it at meetings of shareholders of the company.
(b) A natural person who is authorised as described in paragraph (a) may exercise, on behalf of the body corporate or association that he represents, all the powers it could exercise if it were a natural person as well as a shareholder.
65. (1) Subject to a requirement in the Memorandum or Articles to give longer notice, the directors shall give not less than seven days notice of meetings of members to those persons whose names on the date the notice is given appear as members in the share register referred to in section 29.
(2) Notwithstanding subsection (1), subject to any limitations in the Memorandum or Articles, a meeting of members held in contravention of the requirement to give notice is valid if members holding an absolute majority of the total number of votes entitled to vote on all matters to be considered at the meeting have waived the notice of the meeting, unless a class or series of shares are entitled to vote thereon as a class or series; in which case, the meeting is valid if the notice has been waived by an absolute majority of the votes of that class or series together with an absolute majority of the remaining votes.
66. A meeting of members is duly constituted for purposes of a resolution of members, if, at the commencement of the meeting, there are present in person or by proxy 1/3, or such higher proportion as may be specified in the Memorandum or Articles, of the votes of the shares of each class or series of shares entitled to vote as a class or series thereon and 1/3, or such higher proportion as may be specified in the Memorandum or Articles, of the votes of the remaining shares entitled to vote thereon.
67. Except as otherwise provided in the Memorandum or Articles, all members vote as one class and each whole share has one vote.
68. Subject to any limitations in the Memorandum or Articles, an action that may be taken by members at a meeting of members may also be taken by a resolution of members consented to in writing or by telex, telegram, cable or other written electronic communication, without the need for any notice.
69. (1) Any notice, information or written statement required under this Act to be given by a company incorporated under this Act to members must be served—
(a) in the case of members holding registered shares, by mail addressed to each member at the address shown in the share register; and
(b) in the case of members holding bearer shares —
(i) in the manner provided in the Memorandum or Article; or
(ii) in the absence of a provision in the Memorandum or Articles or if the notice, information or written statement can no longer be served as specified in the Memorandum or Articles by publishing the notice, information or written statement in the Gazette and in a newspaper published or circulated in Montserrat and a newspaper in the place where the company has its principal office.
(2) Subject to a requirement in the Memorandum or Articles to give a specific length of notice, the directors must give sufficient notice of meetings of members to members holding bearer shares to allow a reasonable opportunity for them to take action in order to secure or exercise the right or privilege, other than the right or privilege to vote, that is the subject of the notice.
(3) For the purposes of subsection (2), what amounts to sufficient notice is a matter of fact to be determined after having regard to all the circumstances.
70. (1) Any summons, notice, order, document, process, information or written statement to be served on a company incorporated under this Act may be served by leaving it, or by sending it by registered mail addressed to the company, at its registered office, or by leaving it with, or by sending it by registered mail to, the registered agent of the company.
(2) Service of any summons, notice, order, document, process, information or written statement to be served on a company incorporated under this Act may be proved by showing that the summons, notice, order, document, process, information or written statement—
(a) was posted in such time as to admit to its being delivered in the normal course of delivery, within the period prescribed for service; and
71. (1) A company must keep accounting records that—
(b) will at any time enable the financial position of the company to be determined with reasonable accuracy.
(2) A company incorporated under this Act shall keep—
(iv) committees of officers;
(4) If the accounting records of a company are kept outside Montserrat, the company must ensure that it keeps at its registered office or at some other place in Montserrat designated by the directors a written record of the place or places outside Montserrat where its accounting records are kept.
72. (1) A member of a company incorporated under this Act may, in person or by attorney and in furtherance of a proper purpose, request in writing specifying the purpose, to inspect during normal business hours the share register of the company or the books, records, minutes and consents kept by the company and to make copies or extracts therefrom.
(2) For purposes of subsection (1), a proper purpose is a purpose reasonably related to the member’s interest as a member.
(5) Upon refusal by the company of a request under subsection (1), the member may before the expiration of a period of ninety days of his receiving notice of the refusal, apply to the Court for an order to allow the inspection.
73. (1) Contracts may be entered into on behalf of a company incorporated under this Act as follows—
(3) Without affecting subsection (1)(a) a contract, agreement or other instrument executed by or on behalf of a company by a director or an authorised officer or agent of the company is not invalid by reason only of the fact that the common seal of the company is not affixed to the contract, agreement or instrument.
74. (1) A person who enters into a written contract in the name of or on behalf of a company incorporated under this Act before the company comes into existence, is personally bound by the contract and is entitled to the benefits of the contract, except where—
75. (1) If any contract, agreement, deed or other instrument relating to the payment of a claim or the delivering or transferring of property, whether real or personal, wherever situate, is entered into by a company incorporated under this Act and the contract, agreement, deed or other instrument designates a payee or beneficiary to receive the payment or property—
76. A promissory note or bill of exchange shall be deemed to have been made, accepted or endorsed by a company incorporated under this Act if it is made, accepted or endorsed in the name of the company—
77. (1) A company incorporated under this Act may, by an instrument in writing, whether or not under its common seal, authorise a person, either generally or in respect of any specified matters, to act as its agent on behalf
of the company and to execute contracts, agreements, deeds and other instruments on behalf of the company.
78. A document requiring authentication or attestation by a company incorporated under this Act may be signed by a director, a secretary or by an authorised officer or agent of the company, and need not be under its common seal.
79. If at any time there is no member of a company incorporated under this Act, any person doing business in the name of or on behalf of the company is personally liable for the payment of all debts of the company contracted during the time and the person may be sued therefor without joinder in the proceedings of any other person.
80. (1) If a company or a director of a company engages, or proposes to engage in conduct that contravenes this Act, the Memorandum or Articles of the company or any unanimous shareholder agreement, the Court may, on the application of a shareholder or a director of the company, make an order directing the company or director to comply with, or restraining the company or director from engaging in conduct that contravenes this Act, the Memorandum or Articles of the company or any unanimous shareholder agreement.
81. (1) Subject to subsection (3), the Court may, on the application of a shareholder of a company, grant leave to that shareholder to—
(b) intervene in proceedings to which the company is a party for the purpose of continuing, defending, or discontinuing the proceedings on behalf of the company.
(2) Without limiting subsection (1), in determining whether to grant leave under that subsection, the Court must take the following matters into account—
(a) whether the shareholder is acting in good faith;
(d) the costs of the proceedings in relation to the relief likely to be maintained; and
(3) Leave to bring or intervene in proceedings may be granted under subsection (1) only if the Court is satisfied that either—
(a) the company does not intend to bring, diligently continue or defend, or discontinue the proceedings as the case may be; or
(4) Unless the Court otherwise orders, not less than twenty eight days notice of an application for leave under subsection (1) must be served on the company which is entitled to appear and be heard at the hearing of the application.
(6) Except as provided in this section, a shareholder is not entitled to bring or intervene in any proceedings in the name of or on behalf of a company.
82. (1) If the Court grants leave to a shareholder to bring or intervene in proceedings under section 96, it shall, on the application of the shareholder, order that the whole of the reasonable costs of bringing or intervening in the proceedings must be met by the company unless the Court considers that it would be unjust or inequitable for the company to bear those costs.
(2) If the Court, on an application made by a shareholder under subsection (1), considers that it would be unjust or inequitable for the company to bear the whole of the reasonable costs of bringing or intervening in the proceedings, it may order—
(b) that the company shall not bear any of the costs. (Inserted by Act 10 of 2002)
Powers of Court where leave granted under section 81
83. The Court may, at any time after granting a shareholder leave under section 81, make any order it considers appropriate in relation to proceedings brought by the shareholder or in which the shareholder intervenes, including, without limiting the generality of this subsection—
(a) an order authorising the shareholder or any other person to control the proceedings;
(c) an order that the company or its directors provide information or assistance in relation to the proceedings;
84. No proceedings brought by a shareholder or in which a shareholder intervenes with the leave of the Court under section 81, may be settled or compromised or discontinued without the approval of the Court.
85. A shareholder of a company may bring an action against the company for breach of a duty owed by the company to him as a shareholder.
Prejudiced shareholders
86. (1) A shareholder of a company who considers that the affairs of the company have been, are being or are likely to be conducted in a manner that is, or any act or acts of the company have been, or are, likely to be oppressive, unfairly discriminatory, or unfairly prejudicial to him in that capacity, may apply to the Court for an Order under this section.
(2) If, on an application under this section, the Court considers that it is just and equitable to do so, it may make such order as it thinks fit, including, without limiting the generality of this subsection, one or more of the following orders—
(a) requiring the company or any other person to acquire the shareholder’s shares;
87. Where a shareholder of a company brings proceedings against the company and other shareholders have the same or substantially the same interest in relation to the proceedings, the Court may appoint that shareholder to represent all or some of the shareholders having the same interest and may, for that purpose, make such order as it thinks fit including, without limiting the generality of this section, an order—
(b) as to the costs of the proceedings;
Interpretation for purposes of Part 7
88. In this Part—
89. (1) Two or more companies incorporated under this Act may merge or consolidate in accordance with subsections (3) to (5).
(3) The directors of each constituent company that proposes to participate in a merger or consolidation must approve a written plan of merger or consolidation containing, as the case requires—
(b) in respect to each constituent company—
(i) the designation and number of outstanding shares of each class and series of shares, specifying each such class and series entitled to vote on the merger or consolidation; and
(4) Some or all shares of the same class or series of shares in each constituent company may be converted into a particular kind of property and other shares of the class or series, or all shares of other classes or series of shares, may be converted into another kind of property.
(5) The following apply in respect of a merger or consolidation under this section—
(a) the plan of merger or consolidation must be authorised by a resolution of members and the outstanding shares of a class or series of shares are entitled to vote on the merger or consolidation as a class or series if the Memorandum or Articles so provide or if the plan of merger or consolidation contains any provisions that, if contained in a proposed amendment to the Memorandum or Articles, would entitle the class or series to vote on the proposed amendment as a class or series;
(d) after approval of the plan of merger or consolidation by the directors and members of each constituent company, articles of merger or consolidation must be executed by each company and must contain—
(e) the articles of merger or consolidation must be submitted to the Registrar who must retain and register them in the Register;
(f) upon the registration of the articles of merger or consolidation the Registrar shall within three working days following such registration issue a certificate under his hand and seal certifying that the articles of merger or consolidation have been registered.
90. (1) A parent company incorporated under this Act may merge with one or more subsidiary companies incorporated under this Act or under the Companies Act, without the authorisation of the members of any company, in accordance with subsections (2) to (6), if the surviving company is a company incorporated under this Act and will satisfy the requirements prescribed for an International Business Company under section 5.
(2) The directors of the parent company must approve a written plan of merger containing—
(3) Some or all shares of the same class or series of shares in each company to be merged may be converted into property of a particular kind and other shares of the class or series, or all shares of other classes or series of shares, may be converted into another kind of property; but, if the parent company is not the surviving company, shares of each class and series of shares in the parent company may only be converted into similar shares of the surviving company.
(4) Every member of each subsidiary company to be merged is entitled on demand to a copy of the plan of merger or an outline thereof.
(7) Upon the registration of the articles of merger, the Registrar shall within three working days following such registration issue a certificate under his hand and seal certifying that the articles of merger have been registered.
91. (1) A merger or consolidation is effective on the date the articles of merger or consolidation are registered by the Registrar or on such date subsequent thereto, not exceeding thirty days, as is stated in the articles of merger or consolidation.
(a) the surviving company or the consolidated company in so far as is consistent with its Memorandum and Articles as amended or established by the articles of merger or consolidation, has all rights, privileges, immunities, powers, objects and purposes of each of the constituent companies;
(b) no proceedings, whether civil or criminal, pending at the time of a merger or consolidation by or against a constituent company, or against any member, director, officer or agent thereof, are abated or discontinued by the merger or consolidation, but—
92. (1) One or more companies incorporated under this Act may merge or consolidate with one or more companies incorporated under the laws of jurisdictions outside Montserrat in accordance with subsections (2) to (4), including where one of the constituent companies is a parent company and the other constituent companies are subsidiary companies, if the merger or consolidation is permitted by the laws of the jurisdictions in which the companies incorporated outside Montserrat are incorporated.
(2) The following apply in respect of a merger or consolidation, under this section—
(a) a company incorporated under this Act shall comply with the provisions of this Act with respect to the merger or consolidation, as the case may be, of companies incorporated under this Act and a company incorporated under the laws of a jurisdiction outside Montserrat shall comply with the laws of that jurisdiction; and
(b) if the surviving company or the consolidated company is to be incorporated under the laws of a jurisdiction outside Montserrat it must submit to the Registrar—
(i) an agreement that a service of process may be effected on it in Montserrat in respect of proceedings for the enforcement of any claim, debt, liability or obligation of a constituent company incorporated under this Act or in respect of proceedings for the enforcement of the rights of a dissenting member of a constituent company incorporated under this Act against the surviving company or the consolidated company;
(3) The effect under this section of a merger or consolidation is the same as in the case of a merger or consolidation under section 89 if the surviving company or the consolidated company is incorporated under this Act, but if the surviving company or the consolidated company is incorporated under the laws of a jurisdiction outside Montserrat the effect of the merger or consolidation is the same as in the case of a merger or consolidation under section 89 except in so far as the laws of the other jurisdiction otherwise provide.
(4) If the surviving company or the consolidated company is incorporated under this Act, the merger or consolidation is effective on the date the articles of merger or consolidation are registered by the Registrar or on such date subsequent thereto, not exceeding thirty days, as is stated in the articles of merger or consolidation; but if the surviving company or the consolidated company is incorporated under the laws of a jurisdiction
outside Montserrat the merger or consolidation is effective as provided by the laws of that other jurisdiction.
93. Any sale, transfer, lease, exchange or other disposition of more than 50% of the assets of a company incorporated under this Act, other than a transfer pursuant to the power described in section 9(2), if not made in the usual or regular course of the business carried on by the company, shall be made as follows—
94. (1) Subject to any limitations in the Memorandum or Articles—
(a) members holding 90% of the votes of the outstanding shares entitled to vote; and
(b) members holding 90% of the votes of the outstanding shares of each class and series of shares entitled to vote as a class or series,
on a merger or consolidation under section 89, may give a written instruction to a company incorporated under this Act directing the company to redeem the shares held by the remaining members.
95. (1) In this section, “arrangement” means—
(b) a reorganization or reconstruction of a company incorporated under this Act;
(2) If the directors of a company incorporated under this Act determine that it is in the best interests of the company or the creditors or members thereof, the directors of the company may, by a resolution of directors, approve a plan of arrangement that contains the details of the proposed arrangement, even though the proposed arrangement may be authorised or permitted by any other provision of this Act or otherwise permitted.
(4) Upon an application made to it under subsection (3) the Court may make any interim or final order and may—
(c) determine whether any holder of shares, debt obligations or other securities in the company may dissent from the proposed arrangement and receive payment of the fair value
of his shares, debt obligations or other securities under section 96;
(6) The directors of the company, upon confirming the plan of arrangement, shall—
(7) After the plan of arrangement has been approved by those persons by whom the order of the Court may require approval, articles of arrangement must be executed by the company and must contain—
(9) Upon the registration of the articles of arrangement the Registrar shall within three working days issue a certificate under his hand and seal certifying that the articles of arrangement have been registered.
96. (1) A member of a company incorporated under this Act is entitled to payment of the fair value of his shares upon dissenting from—
(a) a merger, if the company is a constituent company, unless the company is the surviving company and the member continues to hold the same or substantially similar shares;
(c) a sale, transfer, lease, exchange or other disposition of more than 50% of the assets or business of the company, if not made in the usual or regular course of the business carried on by the company, but not including—
(i) a disposition pursuant to an order of the Court;
(d) a redemption of his shares by the company pursuant to section 94; and
(4) Within twenty days immediately following the date on which the vote of members authorising the action is taken, or the date on which written consent of members without a meeting is obtained, the company must give written notice of the authorisation or consent to each member who gave written objection or from whom written objection was not required, except those members who voted for, or consented to in writing, the proposed action.
(5) A member to whom the company was required to give notice who elects to dissent must, within twenty days immediately following the date on which the notice referred to in subsection (4) is given, give to the company a written notice of his decision to elect to dissent, stating—
and a member who elects to dissent from a merger under section 90 must give to the company a written notice of his decision to elect to dissent within twenty days immediately following the date on which the copy of the plan of merger or an outline thereof is given to him in accordance with section 90.
(8) Within seven days immediately following the date of the expiration of the period within which members may give their notices of election to dissent, or within seven days immediately following the date on which the proposed action is put into effect, whichever is later, the company or, in the case of a merger or consolidation, the surviving company or the consolidated company, must make a written offer each dissenting member to purchase his shares at a specified price that the company determines to be their fair value; and if, within thirty days immediately following the date on which the offer is made, the company making the offer and the dissenting member agree upon the price to be paid for his shares, the company shall pay to the member the amount in money upon the surrender of the certificates representing his shares.
(9) If the company and a dissenting member fail, within the period of thirty days referred to in subsection (8), to agree on the price to be paid for the shares owned by the member, within twenty days immediately following the date on which the period of thirty days expires, the following shall apply—
(b) the two designated appraisers, together shall designate a third appraiser;
97. (1) A company incorporated under the Companies Act or incorporated under the laws of a jurisdiction outside Montserrat may, if it will satisfy the requirements prescribed for an International Business Company under section 5, continue as a company incorporated under this Act as follows—
(a) articles of continuation, written in the English language or if written in a language other than the English language, accompanied by a certified translation into the English language, must be approved—
(i) by a majority of the directors or the other persons who are charged with exercising the powers of the company; or;
(b) the articles of continuation must contain—
(c) the articles of continuation, accompanied by a copy of the Memorandum and Articles of the company, or their equivalent, written in the English language or if written in a language other than the English language, accompanied by a certified translation into the English language, must be
submitted to the Registrar who must retain and register them in the Register; and
(d) upon the registration of the articles of continuation the Registrar shall within three working days of such registration issue a certificate of continuation under his hand and seal certifying that the company is incorporated under this Act.
(2) A company incorporated under the laws of a jurisdiction outside Montserrat is entitled to continue as a company incorporated under this Act notwithstanding any provision to the contrary of the laws of the jurisdiction under which it is incorporated.
98. (1) A company incorporated under the laws of a jurisdiction outside Montserrat that is permitted under section 97 to continue as a company incorporated under this Act, may, after complying with section 97(1)(a) and (b), submit to the Registrar the following documents—
(b) a written authorisation designating one or more persons who may give notice to the Registrar, by telex, telegram, cable or by registered mail, that the articles of continuation should become effective.
(3) Upon receipt of the notice referred to in subsection (1), the Registrar shall—
(b) within three working days of such registration issue a certificate of continuation under his hand and seal certifying that the company is incorporated under this Act.
(4) For purposes of subsection (3), the Registrar may rely on a notice referred to in subsection (1) sent, or purported to be sent, by a person named in the written authorisation.
(5) Prior to the registration of the documents referred to in subsection (1), a company may rescind the written authorisation referred to in subsection (1) by delivering to the Registrar a written notice of rescission.
(6) If the Registrar does not receive a notice referred to in subsection (1) from a person named in the written authorisation within one year after the date on which the documents referred to in subsection (1) were submitted to the Registrar, the articles of continuation are rescinded.
99. A certificate of continuation issued by the Registrar under section 97(1)(d) or under section 98(3) is prima facie evidence of compliance with all requirements of this Act in respect of continuation.
100. (1) From the time of the issue by the Registrar of a certificate of continuation under section 97(1)(d) or under section 98(3)—
(iii) is no longer to be treated as a company incorporated under the Companies Act or a company incorporated under the laws of a jurisdiction outside Montserrat;
(a) no conviction, judgement, ruling, order, claim, debt, liability or obligation due or to become due, and no cause existing, against the company or against a member, director, officer or agent thereof, is released or impaired by its continuation as a company under this Act; and
(b) no proceedings, whether civil or criminal, pending at the time of the issue by the Registrar of a certificate of continuation under section 97(1)(d) or under section 98(3) by or against the company, or against a member, director, officer or agent thereof, are abated or discontinued by its continuation as a company under this Act, but the proceedings may be enforced, prosecuted, settled or compromised by or against the company or against the member, director, officer or agent thereof, as the case may be.
(3) All shares in the company that were outstanding prior to the issue by the Registrar of a certificate of continuation under section 97(1)(d) or under section 98(3) in respect to the company shall be deemed to have been issued in conformity with this Act, but a share that at the time of the issue of the certificate of continuation was not fully paid shall be paid up no later than one year after the date of the issue of the certificate of continuation and until the share is paid up, the member holding the share remains liable for the amount unpaid on the share.
(4) If, at the time of the issue by the Registrar of a certificate of continuation under section 97(1)(d) or under section 98(3) any provisions of the Memorandum and Articles of the company do not in any respect accord with this Act then—
(a) the provisions of the Memorandum and Articles will continue to govern the company until the provisions are amended to accord with this Act or for a period of two years after the date of the issue of the certificate of continuation, whichever is the sooner;
(c) the company shall make such amendments to its Memorandum and Articles as may be necessary to accord with this Act not later than a period of two years after the date of the issue of the certificate of continuation.
101. (1) Subject to any limitations in its Memorandum or Articles, a company incorporated under this Act may, by resolution of directors or by a resolution of members, continue as a company incorporated under the laws of a jurisdiction outside Montserrat in the manner provided under those laws.
(2) A company incorporated under this Act that continues as a company incorporated under the laws of a jurisdiction outside Montserrat
does not cease to be a company incorporated under this Act unless the laws of the jurisdiction outside Montserrat permit the continuation and the company has complied with those laws.
(3) Where a company incorporated under this Act is continued under the laws of a jurisdiction outside Montserrat—
(a) the company is liable for all of its claims, debts, liabilities and obligations that existed prior to its continuation as a company under the laws of the jurisdiction outside Montserrat;
(b) no conviction, judgement, ruling, order, claim, debt, liability or obligation due or to become due, and no cause existing, against the company or against a member, director, officer or agent thereof, is released or impaired by its continuation as a company under the laws of the jurisdiction outside Montserrat; and
(c) no proceedings, whether civil or criminal, pending by or against the company, or against a member, director, officer or agent thereof, are abated or discontinued by its continuation as a company under the laws of the jurisdiction outside Montserrat, but the proceedings may be enforced, prosecuted, settled or compromised by or against the company or against the member, director, officer or agent thereof, as the case may be.
Compulsory winding-up and dissolution
102. A company incorporated under this Act shall commence to wind-up and dissolve by a resolution of directors upon expiration of such time as may be prescribed by its Memorandum or Articles for its existence.
103 (1) A company incorporated under this Act that has never issued shares may voluntarily commence to wind-up and dissolve by a resolution of directors.
Powers of directors in a winding-up and dissolution
104. Upon the commencement of a winding-up and dissolution required under section 102 or permitted under section 103, the directors may only—
(a) authorise a liquidator, by a resolution of directors, to carry on the business of the company if the liquidator determines that to do so would be necessary or in the best interests of the creditors or members of the company; and
(b) determine to rescind the articles of dissolution as permitted under section 108.
105. (1) A liquidator shall, upon his appointment in accordance with this Part and upon the commencement of a winding-up and dissolution, proceed—
(c) to pay or provide for the payment of or to discharge all claims, debts, liabilities and obligations of the company in the following order of priority—
(i) in satisfaction of all outstanding fees, taxes, licence fees and penalties due to the Registrar;
(ii) in satisfaction of the liquidators fees and costs approved by the Court;
(iii) secured creditors;
(iv) unsecured creditors;
(v) proprietor’s loans;
(d) to distribute any surplus assets of the company remaining after the completion of the payments and provisions referred to in subsection (1)(c) to the members in accordance with the Memorandum and Articles;
(f) to send a copy of the statement of account to all members if so required by the plan of dissolution required by section 107.
106. (1) In order to perform the duties imposed on him under section 105, a liquidator has all the powers of the company that are not reserved to the
members under this Act or in the Memorandum or Articles, including, but not limited to, the power—
(h) to carry on the business of the company, if the liquidator has received authorisation to do so in the plan of liquidation or by a resolution of directors permitted under section 104, as the liquidator may determine to be necessary or to be in the best interests of the creditors or members of the company;
(2) Notwithstanding subsection (1)(h), a liquidator shall not, without the permission of the Court, carry on for a period in excess of two years the business of a company that is being wound-up and dissolved under this Act.
Procedure on winding-up and dissolution
107. (1) The directors of a company required under section 102 or proposing under section 103 to wind-up and dissolve the company must approve a plan of dissolution containing—
(c) a statement that the winding-up will commence on the date when articles of dissolution are submitted to the Registrar or on such date subsequent thereto, not exceeding thirty days, as is stated in the articles of dissolution;
(2) If a winding-up and dissolution is being effected in a case where section 103(2) is applicable—
(a) the plan of dissolution must be authorised by a resolution of members, and the holders of the outstanding shares of a class or series of shares are entitled to vote on the plan of dissolution as a class or series only if the Memorandum or Articles so provide;
(3) After approval of the plan of dissolution by the directors, and if required, by the members in accordance with subsection (2), articles of dissolution must be executed by the company and must contain—
(4) Articles of dissolution must be submitted to the Registrar who must retain and register them in the Register and within thirty days immediately following the date on which the articles of dissolution are
submitted to the Registrar, the company must cause to be published, in the Gazette, in a publication of general circulation in Montserrat and in a publication of general circulation in the country or place where the company has its principal office, a notice stating—
(5) A winding-up and dissolution commences on the date the articles of dissolution are registered by the Registrar or on such date subsequent thereto, not exceeding thirty days, as is stated in the articles of dissolution.
(6) A liquidator shall, upon completion of a winding-up and dissolution, submit to the Registrar a statement that the winding-up and dissolution has been completed and upon receiving the notice, the Registrar shall—
(7) Where the Registrar issues a certificate of dissolution under his hand and seal certifying that the company has been dissolved—
(8) Within fourteen days immediately following the date on which the certificate of dissolution has been issued by the Registrar under subsection (6), the liquidator shall cause to be published in the Gazette, in a publication of general circulation in Montserrat and in a publication of general circulation in the country or place where the company has its principal office, a notice that the company has been dissolved and has been struck-off the Register.
Rescission of winding-up and dissolution
108. (1) In the case of a winding-up and dissolution permitted under section 103, a company may, prior to submitting to the Registrar a notice specified in section 107(4), rescind the articles of dissolution by—
(a) a resolution of directors in the case of a winding-up and dissolution under section 103(1); or
(b) a resolution of members in the case of a winding-up and dissolution under section 103(2).
(3) Within thirty days immediately following the date on which the resolution referred to in subsection (1) has been submitted to the Registrar, the company must cause a notice stating that the company has rescinded its intention to wind-up and dissolve to be published in the Gazette, in a publication of general circulation in Montserrat and in a publication of general circulation in the country or place where the company has its principal office.
109. (1) Where—
(a) the directors or, as the case may be, the members of a company that is required under section 102 or permitted under section 103 to wind-up and dissolve, at the time of the passing of the resolution to wind-up and dissolve the company, have reason to believe that the company will not be able to pay or provide for the payment of or discharge all claims, debts, liabilities and obligations of the company in full; or
110. Notwithstanding the provisions of this Act relating to winding-up and dissolution, a company incorporated under this Act may be wound up by the Court under any of the circumstances, in so far as they are applicable to a company incorporated under this Act, in which a company incorporated under the Companies Act may be wound up by the Court and, in that case, the provisions of the Companies Act relating to winding-up and dissolution apply mutatis mutandis to the winding-up and dissolution of the company.
111. (1) The provisions of the Companies Act regarding receivers and managers govern mutatis mutandis the appointment, duties, powers and
liabilities of receivers and managers of the assets of any company incorporated under this Act.
(2) This section comes into operation on such date as the Governor may appoint by proclamation published in the Gazette.
112. (1) Notwithstanding section 6, where the Registrar has reasonable cause to believe that a company incorporated under this Act no longer satisfies the requirements prescribed for an International Business Company under section 5, the Registrar must serve on the company a notice that the name of the company may be struck-off the Register if the company no longer satisfies those requirements.
(2) If the Registrar does not receive a reply within thirty days immediately following the date of the service of the notice referred to in subsection (1), he must serve on the company another notice that the name of the company may be struck-off the Register if a reply to the notice is not received within thirty days immediately following the date thereof and that a notice of the contemplated striking-off will be published in the Gazette.
(a) receives from the company a notice stating that the company no longer satisfies the requirements prescribed for an International Business Company under section 5, in reply to a notice served on the company under subsection (1) or (2); or
(b) does not receive a reply to a notice served on the company under subsection (2) as required by that subsection,
he must publish a notice in the Gazette that the name of the company will be struck-off the Register unless the company or another person satisfies the Registrar that the name of the company should not be struck-off.
(4) At the expiration of a period of ninety days immediately following the date of the publication of the notice under subsection (3), the Registrar shall strike the name of the company off the Register, unless the company or any other person satisfies the Registrar that the name of the company should not be struck-off, and the Registrar must publish notice of the striking-off in the Gazette.
(5) If a company has failed to pay the increased licence fee due under section 126(2), the Registrar shall, within six calender months following the date specified in section 126(1), publish in the Gazette and serve on the company a notice stating the amount of the increased licence fee due under section 126(2) and stating that the name of the company will be struck-off the Register if the company fails to pay the increased licence fee on or before 31 December next ensuing.
(6) If a company fails to pay the increased licence fee stated in the notice referred to in subsection (5) by 31 December referred to in that
subsection, the Registrar shall strike the name of the company off the Register from the 1st January next ensuing.
(7) A company that has been struck-off the Register under this section remains liable for all claims, debts, liabilities and obligations of the company, and the striking-off does not affect the liability of any of its members, directors, officers or agents.
113. (1) If the name of a company has been struck-off the Register under section 112(4), the company, or a creditor, member or liquidator thereof, may apply to the Court to have the name of the company restored to the Register.
(2) If upon an application under subsection (1) the Court is satisfied that—
(a) at the time the name of the company was struck-off the Register, the company did satisfy the requirements prescribed for an International Business Company under section 5; and
the Court may order the name of the company to be restored to the Register upon payment to the Registrar of all fees due under section 125 and all licence fees due under section 126 without any increase for late payment, and upon restoration of the name of the company to the Register, the name of the company is deemed never to have been struck-off the Register.
(3) If the name of a company has been struck-off the Register under section 112(6), the company, or a creditor, member of liquidator thereof, may, within three years immediately following the date of the striking-off, apply to the Registrar to have the name of the company restored to the Register, and upon payment to the Registrar of—
(a) all fees due under section 125;
(b) the licence fee stated in the notice referred to in section 112(5); and
(c) a licence fee in the amount stated in the notice referred to in paragraph (b) for each year or part thereof during which the name of the company remained struck-off the Register,
the Registrar shall restore the name of the company to the Register and upon restoration of the name of the company to the Register, the name of the company shall be deemed never to have been struck-off the Register.
(4) For purposes of this Part, the appointment of an official receiver under section 115 operates as an order to restore the name of the company to the Register.
114. (1) Where the name of a company has been struck-off the Register, the company, and the directors, members, liquidators and receivers thereof, may not legally—
(2) Notwithstanding subsection (1), where the name of the company has been struck-off the Register, the company, or a director, member, liquidator or receiver thereof, may—
(3) The fact that the name of a company is struck-off the Register does not prevent—
(b) any creditor from making a claim against the company and pursuing the claim through to judgement or execution; or
(c) the appointment by the Court of an official liquidator for the company under section 115.
115. The Court may appoint a person to be the official liquidator in respect of a company the name of which has been struck-off the Register.
Dissolution of company struck-off
116. (1) If the name of a company has been struck-off the Register under section 112 and remains struck-off continuously for a period of three years, the company shall be deemed to have been dissolved, but the Registrar may, if he determines that it is in the best interests of the Crown to do so, apply to the Court to have the company put into liquidation and a person shall be appointed as the official liquidator thereof.
(2) The duties of an official liquidator in respect of a company in liquidation pursuant to subsection (1) are limited to—
(b) calling for claims by advertisement in the Gazette and in such other manner as he deems appropriate, requiring all claims to be submitted to him within a period of not less than ninety days immediately following the date of the advertisement; and
(ii) secured creditors;
(iii) unsecured creditors;
(iv) proprietors loans;
(v) to the members in accordance with the Memorandum and Articles.
(3) In order to perform the duties with which he is charged under subsection (2), the official liquidator may exercise such powers as the Court may as it considers reasonable confer on him.
(4) The official liquidator may require such proof as he considers necessary to substantiate any claim submitted to him and may admit, reject or fix claims on the basis of the evidence submitted to him.
117. (1) A shareholder of a company, or the Registrar, may apply, ex parte or upon such notice as the Court may require, to the Court for an order directing that an investigation be made of the company and any of its affiliated companies.
(2) If, upon an application under subsection (1) in respect of a company, it appears to the Court that—
(b) the business or affairs of the company or any of its affiliates are or have been carried on in a manner, or the powers of the directors are or have been exercised in a manner, that is oppressive or unfairly prejudicial to, or that unfairly disregards, the interest of a shareholder;
(c) the company or any of its affiliates was formed for a fraudulent or unlawful purpose, or is to be dissolved for a fraudulent or unlawful purpose;
(d) persons concerned with the formation, business or affairs of the company or any of its affiliates have in connection therewith acted fraudulently or dishonestly; or
(e) in any case it is in the public interest that an investigation of the company be made,
the Court may order that an investigation be made of the company and any of its affiliated companies.
(3) If a shareholder makes an application under subsection (1) he shall give the Registrar reasonable notice thereof; and the Registrar is entitled to appear and be heard in person or by an attorney-at-law.
118. (1) In connection with an investigation under this Part in respect of a company, the Court may make any order it thinks fit, including—
(b) an order appointing an inspector, who may be the Registrar, and fixing the remuneration of the inspector and replacing the inspector;
(k) an order requiring an inspector to discontinue an investigation; or
(l) an order requiring the company to pay the costs of the investigation.
(2) An inspector shall send to the Registrar a copy of every report made by the inspector under this Part.
119. (1) An inspector under this Part has the powers set out in the order appointing him.
(2) An inspector shall upon request produce to an interested person a copy of any order made under section 117(1).
120. (1) An interested person may apply to the Court for an order that a hearing conducted by an inspector under this Part be heard in camera and for directions on any matter arising in the investigation.
121. No person is excused from attending and giving evidence and producing documents and records to an inspector under this Part by reason only that the evidence tends to incriminate that person or subject him to any proceeding or penalty; but the evidence may not be used or received against him in any proceeding thereafter instituted against him, other than a
prosecution for perjury in giving the evidence, or a prosecution under section 95 of the Penal Code in respect of the evidence.
122. An oral or written statement or report made by an inspector or any other person in an investigation under this Part has absolute privilege.
123. Nothing in this Part affects the privileges that exist in respect of an attorney-at-law and his client.
124. The Registrar may make of any person any inquiries that relate to compliance with this Act by any persons.
125. There shall be paid to the Registrar, fees as follows—
(a) $300 2 upon the registration by the Registrar of a company
incorporated under this Act the authorised capital of which does not exceed $50,000;
(c) $25 upon the registration by the Registrar of an amendment to the Memorandum or Articles of a company incorporated under this Act, but $700 in the case of an amendment to the Memorandum to increase the authorised capital from $50,000 or less to more than $50,000;
(d) $500 upon the registration by the Registrar of articles of merger or consolidation, but $700 in the case of articles of merger or consolidation that also constitute the Memorandum of a company the authorised capital of which exceeds $50,000 or that amend the Memorandum of a
2 Under section 2(2), all monetary amounts in this Act are U.S. dollars currency.
surviving company to increase the authorised capital from $50,000 or less to more than $50,000;
(e) $500 upon the registration by the Registrar of articles of arrangements, but $700 in the case of articles of arrangement that also constitute the Memorandum of a company the authorised capital of which exceeds $50,000 or that amend the Memorandum of a company to increase the authorised capital from $50,000 or less to more than $50,000;
(f) $100 upon the submission to the Registrar of articles of continuation for a company incorporated under the Companies Act the authorised capital of which does not exceed $50,000;
(g) $1,000 upon the submission to the Registrar of articles of continuation for a company incorporated under the Companies Act the authorised capital of which exceeds $50,000;
(k) $100 upon the registration by the Registrar of a resolution rescinding articles of dissolution;
(o) $300 upon the restoration by the Registrar to the Register of a company incorporated under this Act the name of which was struck-off the Register; and
(p) $25 for the reservation of a name as provided for in section 11(7).
Licence fees and taxation
126. (1) A company the name of which is on the Register on the date in any year that is the anniversary date of its incorporation shall, on or before the end of the month in which the anniversary date of its incorporation falls, pay to the Registrar either an annual licence fee calculated as follows—
(a) $300 if its authorised capital does not exceed $50,000;
(b) $1,000 if its authorised capital exceeds $50,000, or
the company may, in respect of any calendar year subsequent to its year of incorporation and in substitution of the licence fees under subsection (1) hereof, elect to pay a corporate tax calculated at the rate of 1.75% of its net profit for that calendar year, such profit to be computed and assessed in accordance with the provisions of the Income and Corporation Tax Act. Any election pursuant to this section is to be made in writing to the Registrar before 31 January, in respect of that calendar year and such election is to be accompanied by an election fee of $1,000. In the case of the year in which a company is incorporated under this Act, an election pursuant to this section must be made in writing to the Registrar within thirty days from the date of incorporation of the company and such an election must be accompanied by the election fee of $1,000 as aforementioned.
(2) If a company fails to pay the amount due as the licence fee under subsection (1) by the date specified therein, the licence fee increases by 100% of that amount by way of penalty.
(Amended by Act 6 of 1992)
127. Any penalty incurred under this Act shall be paid to the Registrar.
128. Any fee, licence fee or penalty payable under this Act that remains unpaid for thirty days after the date on which demand for payment is made by the Registrar is recoverable at the instance of the Attorney General before a magistrate in civil proceedings as a debt due to the Crown notwithstanding the amount sought to be recovered.
Company struck-off liable for fees, etc.
129. A company incorporated under this Act continues to be liable for all fees, licence fees and penalties payable under this Act notwithstanding that the name of the company has been struck-off the Register and all those fees, licence fees and penalties have priority to all other claims against the assets of the company.
130. All fees, licence fees and penalties paid under this Act shall be paid by the Registrar into the Consolidated Fund.
131. (1) The Registrar may refuse to take any action required of him under this Act for which a fee is prescribed until that fee has been paid.
(2) The Registrar may refuse to continue under this Act a company incorporated under the Companies Act until all fees prescribed as payable by the company under the Companies Act have been paid and, in addition, in the case of a company incorporated under the Companies Act that continues its incorporation under this Act not later than 29 April in any year such sum as would have been payable by that company under the Companies Act if that company had not so continued its incorporation under this Act.
132. (1) Notwithstanding any provision of the Income and Corporation Tax Act—
(a) a company incorporated under this Act;
(b) all dividends, interest, rents, royalties, compensations and other amounts paid by the company to persons who are not persons resident in Montserrat;
(c) capital gains realized with respect to any shares, debt obligations or other securities of a company incorporated under this Act by persons who are not persons resident in Montserrat,
are exempted from all provisions of the Income and Corporation Tax Act, the Exchange Control Act, the Foreign Currency Levy Act and the Stamp Act, such exemption to continue for a period of not less than twenty five years from the date of incorporation under this Act.
(2) When the Governor acting on the advice of Cabinet is satisfied that a company registered under this Act requires the services of specially qualified persons in order to enable it to conduct its business effectively from within Montserrat and that it is neither able to acquire those services in Montserrat nor acquire them elsewhere without special benefits being made available for them, the Cabinet may, by order in a special case, provide that these persons—
(a) be exempted from specified taxes in Montserrat;
(b) be permitted to be paid in a foreign currency into a trust account without being liable to be taxed thereon or on the interest thereon; and
(c) be permitted to be paid in some prescribed manner in another currency or otherwise without being liable to be taxed thereon in Montserrat.
133. The Governor acting on the advice of Cabinet may make regulations with respect to the duties to be performed by the Registrar under this Act and in so doing may prescribe the place where the office for the registration of International Business Companies is located. (Amended by Act 9 of 2011)
134. Any certificate or other document required to be issued by the Registrar under this Act shall be in such form as the Governor acting on the advice of Cabinet may approve. (Amended by Act 9 of 2011)
135. (1) The Registrar shall, upon request by any person, issue a certificate of good standing under his hand and seal certifying that a company incorporated under this Act is of good standing if the Registrar is satisfied that—
136. (1) Except as provided in section 98(2), a person may—
(b) require a certificate of incorporation, merger, consolidation, arrangement, continuation, dissolution or good standing of a company incorporated under this Act, or a copy or an extract of any document or any part of a document of which he has custody, to be certified by the Registrar; and a certificate of incorporation, merger, consolidation, arrangement, continuation, dissolution or good standing or a certified copy or extract is prima facie evidence of the matters contained therein.
(2) A document or a copy or an extract of any document or any part of a document certified by the Registrar under subsection (1) is admissable in evidence in any proceedings as if it were the original document.
137. For purposes of determining matters relating to title and jurisdiction but not for purposes of taxation, the situs of the ownership of shares, debt obligations or other securities or a company incorporated under this Act is in Montserrat.
138. (1) A company incorporated under this Act may, without the necessity of joining any other party, apply to the Court, by summons supported by an affidavit, for declaration on any question of interpretation of this Act or of the Memorandum or Articles of the company.
139. A judge of the High Court may exercise in Chambers any jurisdiction that is vested in the Court by this Act and in exercise of that jurisdiction, the judge may award costs as may be just.
140. The Confidential Information Act shall apply to all companies incorporated under this Act, and to all directors, officers, employees, advisers, bankers, agents and brokers employed by companies incorporated under this Act.
(FORMS AND CERTIFICATES) REGULATIONS - SECTIONS 112, 113 AND 114
(S.R.O. 28/1986 and Act 9 of 2011)
1. This Order may be cited as the International Business Companies (Forms and
Certificates) Order.
2. The forms and certificates in the Schedule to this Order are hereby approved
by the Governor acting on the advice of Cabinet for issue by the Registrar of
Companies. (Amended by Act 9 of 2011)
REGISTRAR OF COMPANIES, MONTSERRAT
Please note that with effect from the ................... day of ................................
that the name and address of the Company’s Registered Agent will be:
TELEPHONE NO.: .................................................................................
COMPANY NUMBER ...................................................................................................
IBC 42
I, ..................................................................... , Registrar of Companies for Montserrat,
do hereby certify, pursuant to the International Business Companies Act,
section 95, that ……………………………………… has registered with me on the
............. day of .......….......……......., 20....... to my satisfaction the Articles of
Arrangement approved by the Court on ............................. day of
....................……….., 20….. and that the details have been entered by me in the
company records on the ................... day of ................................., 20......... .
Montserrat the ......... day of ..................,
20..... .
Company Number ........................... .......................................……...
IBC 95 REGISTRAR OF COMPANIES
I, ........................................................ , Registrar of Companies for Montserrat, do
HEREBY CERTIFY, pursuant to the International Business Companies Act, section
89, that all the formalities of the said Act in respect of the companies listed over, have
been complied with by .......................................... or consolidated company on the
........... day of .............................., 20….. and that the details have been entered by me
in the company’s records on the ............ day of .........................., 20....... .
Montserrat the .......... day of ................,
20...... .
Company Number ........................... .................................................
IBC 89 (1) REGISTRAR OF COMPANIES
Companies comprising the merger or consolidation:
I, .................................................................. , Registrar of Companies for Montserrat,
section 107 that ................................................................................. has been dissolved
on the ................... day of .............................,20........ and that it has been duly noted on
my records on the ................... day of ..................., 20.... .
20.... .
IBC 107 (7) REGISTRAR OF COMPANIES
I, .................................................................... , Registrar of Companies for Montserrat,
section 135 that .......................................................................... is of good standing.
In particular the Company—
1. § has/has not submitted to the Registrar articles of merger or consolidation
that have not yet become effective.
2. § has/has not submitted to the Registrar articles of arrangement that have not
yet become effective.
3. § is/is not in the process of being wound up and dissolved.
4. § proceedings/no proceedings to strike the name of the Company off the
Register have been instituted.
(§ delete as appropriate)
Montserrat the .......... day of .................,
20....... .
IBC 135 REGISTRAR OF COMPANIES
section 11(5) that all the formalities required by the said Act have been complied with
by ......................................... previously registered as .....................................................
a company formed in Montserrat on the ................ day of ...................................,
20……. . The new name was registered by me on the International Business Company
register of the .................. day of ..........................., 20........ .
Montserrat the ........ day of ...................,
20……... .
IBC 11 (5) REGISTRAR OF COMPANIES MONTSERRAT, W.I.
APPLICATION FOR: 1. AVAILABILITY OF COMPANY NAME
3. RESERVATION OF COMPANY NAME
If change of name, give present ......................................................................................
name and reason for change ..........................................................................................
……...................................................................................
Significance of name (if any) ..........................................................................................
If name is similar to existing
company give details, i.e.
with that company
Principal activity of company .........................................................................................
Applicant’s Name ............................................................................................................
Address .................................................................... Tel. No.: ....................
Ref.: ...................
Proposed Name:...............................................................................................................
Applicant’s Name: ..............................................................................
Ref.: ...............
Reserved (See Note 16) ................................. Refused (See Note ...................)
NOTES RE COMPANY NAME APPLICATION
Under the International Business Companies Act the Registrar is empowered to
refuse a name if he considers it in any way undesirable.
The following notes are given for guidance of applicants though it must be
understood that they are in no way exhaustive.
1. Application for reservations of a name must be accompanied by the
2. A name will be refused if it is too like that of an existing company, body
corporate or business name on the Montserrat Registers, unless the existing
company changes its name or is dissolved or the existing business name
3. A name will be refused if it is too like that of an existing company, or firm
known to be registered in any other country where such name could imply a
connection therewith, unless the applicant has justifiable links with such
4. A name will be refused if it is misleading or too pretentious, for example if the
name of a company with small resources suggests that it is trading on a great
scale or over a wide field. Similarly a name which consists solely of words
which represent a general description of the trade or business may be refused.
5. Names will not be allowed which:
(i) Suggest a connection with the Crown or members of the Royal Family
or suggest Royal Patronage (including names containing words such
as “Royal”, “King”, “Princess”, or “Crown”).
(ii) Suggest a connection with the Government of Montserrat, Her
Majesty’s Government or a department thereof or with a municipality
or other local authority or with a society or body incorporated by
(iii) Includes the words “Bank”, “Building Society”, “Chamber of
Commerce”, “Chartered”, “Cooperative”, “Imperial”,
“municipal”, or a word conveying a similar meaning.
6. The use of Montserrat or any variation as the predominant name will not
ordinarily be allowed if when taken as a whole the name would give the
unjustified impression that the Company was pre-eminent in its particular
field of activity in the Island. Similar considerations apply to names of other prominent places.
7. Names which include proper names which are not the names of the beneficial
owners (or initials which have no significance) will not be allowed (except for
valid reasons). A married woman may be permitted the use of her maiden
name when she is the beneficial owner of the company but the maiden name
of female relatives who are not the beneficial owners will not generally be
regarded as sufficiently significant.
8. Applicants are advised that if they wish to form companies whose names
include words to which any of the foregoing paragraphs are applicable
consideration of the application must necessarily take longer than would
otherwise be the case and to avoid delay, the fullest details should be given for
the reason for the selection of the name.
9. The words mentioned in these notes should be understood to include all
cognate expressions (e.g. Bank – Bankers, Banking, Insurance – Assurance).
10. The application form on the reverse of these notes must be used but any
additional information the applicant feels will be of help can be attached.
11. Applicants are advised to consult the Registrar of Trade Marks when
considering applications for a proposed new company name particularly if the
proposed name represents an invented word. The acceptance of a particular
name is not an indication by the Registrar that no Trade Mark rights exist in it.
12. Applicants are advised to show on name application forms, in as much detail
as possible, the significance of the name selected. This will avoid delay.
13. Applicants are advised not to incur expenses in connection with a reserved
name before they receive confirmation of its availability.
14. The Registrar is unable to reserve an available name other than by payment of
15. Registration of a company, the name of which includes words generally
descriptive of a Trade or Business does not give any right or implied right to
the exclusive use of such word or words.
16. Where the Registrar has at the present moment no objection to the use of the
above name as a name for a Limited Company the counterfoil will be returned
marked “Reserved”. The Registrar reserves the right to reconsider his
decision if he should become aware before registration of the company (or in
the case of a Change of Name the registration of the resolution) of
circumstances which would make the use of the name undesirable. For that
reason it is inadvisable to undertake final printing of notepaper, etc., until
incorporation has been effected. When the name is not reserved the
counterfoil will be returned marked “refused” and the reason for the refusal
will be shown by reference to the number to these notes.
Please quote the Registrar’s reference on all enquiries relating to the application prior
to incorporation.