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Wednesday, December 02, 2020

Parliamentarians to debate Companies Act amendment, associated bills

Parliamentarians are expected to debate an amendment to the Companies Act today, allowing for the removal of the mandatory requirement of a company seal and to make new provisions for the execution of contracts and deeds.

The bill is expected to bolster this jurisdiction’s efforts to be compliant with the requirements of international tax and financial monitoring bodies, while also improving the ease of doing business in The Bahamas.

In addition, the Companies (Amendment) Bill, 2020 seeks to provide more flexibility on how deeds and similar instruments can be executed by a company without the requirement of a seal, to provide foreign companies with the flexibility to execute contracts and deeds governed by the laws of The Bahamas and to enable and facilitate virtual signings and closings for transactions.

It also would remove the mandatory requirement of a common seal and impose conditions for the use of a common seal if a company chooses to use one.

It also imposes a fine of $10,000 or two years imprisonment for the misuse of a common seal.

Along with the amendment to the Companies Act, the government is also seeking to amend the International Business Companies (Amendment) Act to facilitate the same changes.

The International Business Companies (Amendment) Bill, 2020 provides for the same amendments.

Also included in the compendium of bills is the Foundations (Amendment) Bill, 2019, which clarifies that a foundation under the act created for a charitable purpose may benefit persons anywhere in the world; and the Rule Against Perpetuities (Abolition) (Amendment) Bill, 2020, which clarifies existing laws validating any acts performed in this regard after December 2011, among other things.

The post Parliamentarians to debate Companies Act amendment, associated bills appeared first on The Nassau Guardian.



source https://thenassauguardian.com/parliamentarians-to-debate-companies-act-amendment-associated-bills/

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