The role of a chargee in a BVI company Practically Speaking

Key takeaways

A chargee is someone who has the benefit of security that has been granted by a BVI company
Numerous features make using a BVI company attractive to lenders for structuring finance transactions including:
Clear and simple registration process
Robust insolvency legislative regime providing protection – very similar to UK law
The ability for companies to provide financial assistance to those acquiring their shares
The validity and effectiveness of any security document that a BVI company enters into is determined by the governing law of the particular document
There are two registration regimes to consider:
Mandatory registration – private registration at the companies registered office, on the register of charges maintained by the registered agent
Public registration (optional) – where filings are made with the Registrar of Corporate Affairs in the BVI and which confers priority over any privately registered or any unregistered charge
Notations included in the register of members of a BVI company whose shares have been charged by way of security, provide notice of the security for those dealing with the company
Notice of variation or cessation of a charge can also be filed in the BVI, the variation and release of the underlying charge will be determined by the law of the charge not the filing process