Law of the British Virgin Islands
Encyclopedia
The law of the British Virgin Islands is a combination of common law
and statute
, and is based heavily upon English law
.
Law
in the British Virgin Islands
tends to be a combination of the very old and the very new. As a leading offshore financial centre, the Territory has extremely modern statutes dealing with company law, insolvency
, banking law
, trust law
, insurance
and other related matters. However, in a number of areas of law, such as family law
, the laws of the British Virgin Islands are based upon very old English laws, and can cause some difficulty in modern times. Other areas of law, such as international law
, are essentially regulated externally through the Foreign and Commonwealth Office
in London by Order in Council. A large body of the laws of the British Virgin Islands consists of the common law, which continually updates itself through judicial precedent in the Territory and in other common law countries.
The British Virgin Islands is a dependent territory
of the United Kingdom. Although the local legislature and courts are independent from the United Kingdom, the British Government deals with all international relations on behalf of the Territory, although this may change in the near future in relation to ongoing constitutional negotiations (see below under Constitutional law - developments). The British Virgin Islands does not have a separate vote at the United Nations
.
The early legal history of the British Virgin Islands is somewhat hampered by the fact that in the days of colonisation it was often unclear who controlled the islands. The islands were first settled in modern times by the Dutch, but in 1628 the English crown granted patents for the settlement of what is now the British Virgin Islands to Lord Willoughby
. The British expelled the Dutch in 1672 during the Third Anglo-Dutch War
, but later evinced an intention to return the islands to the Dutch. They later resiled from this position and in 1698 the British government took the view that the Territory was a British possession (see generally: History of the British Virgin Islands
).
It was not until 1773 that the British Virgin Islands actually had its own legislature. Prior to that date laws were extended to the Territory by the legislature of the Leeward Islands
in Antigua
. Some of these laws are still in force in the British Virgin Islands, such as the Common Law (Declaration of Application) Act (Cap 13), which dates from 1705. Doubts as to the validity of those statutes were removed by the Colonial Laws Validity Act 1865
.
The Legislative Assembly first sat on 27 January 1774, however, it took a full further decade for a constitutional framework to be settled. Part of the problem was that the islands were so thinly populated, it was almost impossible to constitute the organs of government.
In 1776 George Suckling
was appointed as Chief Justice, although he did not arrive until 1778, due to political maneuvering in the Territory. Having arrived, the legislature eventually got rid of Suckling by declining to pass the Court Bill. The first law ever to be passed by a local legislature in the British Virgin Islands concerned punishments for runaway slaves. The second provided a mechanism for settling longstanding boundary disputes. Both no doubt reflected the concerns of the islands free inhabitants.
But the Governor-General refused to assent to any bills until a Court Bill was passed. Bills passed by the Legislative Assembly needed to be approved by the Governor-General in Antigua, and early legislation was often vetoed. Laws could also still be passed by the Legislative Assembly of the Leeward Islands under a quasi-federal system, and these applied to all of the British territories in the Leeward Islands. However, the Governor-General used this veto force the Virgin Islands to pass legislation establishing a court.
Eventually the Court Bill was passed in 1783 together with a Bill validating titles as a form of compromise. Nonetheless, it took some time to obtain a Chief Justice whose appointment could be confirmed.
However, abolition of slavery and a collapse in sugar prices in the 19th century lead to the virtual economic ruin of the islands, and although the legislature limped along for some time, it was eventually formally dissolved in 1901. After the famous march of 1947 the legislature was restored in 1950, and permanent self government was devolved in 1967.
of Arthur William Hodge
for the murder of a slave; the only time a British subject was ever executed for killing a slave.
and equity are extended to the British Virgin Islands by statute
.
The Common Law (Declaration of Application) Act (Cap 13) provides:
The West Indies Associated States Supreme Court (Virgin Islands) Act (Cap 80) provides:
s are passed by the Legislative Council
in the British Virgin Islands. Statutes are subject to Royal Assent
by the Governor
as the Queen's representative in the Territory, but a refusal to grant Royal Assent has never yet occurred in the jurisdiction during the modern era.
Periodically, the statutes of the British Virgin Islands are consolidated and issued as the Revised Laws of the Virgin Islands. This was most recently done in 1991. In such revisions, all laws are given a specific chapter number (usually abbreviated to "Cap."). Hence the Arbitration Act is usually cited as the Arbitration Act (Cap 6). Legislation passed after 1991 is usually referred to by year, so the Merchant Shipping Act is usually referred to as the Merchant Shipping Act, 2001, but may be referred to in long form as the Merchant Shipping Act (No 13 of 2001).
On several occasions since 1991 there has been discussion of producing a new revised set of the laws of the Virgin Islands. But the exercise would be extremely challenging today, given the pace of legislative change, and in practical terms it seems improbable that any another consolidated version will be prepared for the foreseeable future.
resolutions into law. Various other highly technical aspects of legislation are dealt with by way of Order in Council; for example, all of the jurisdiction's laws relating to civil aviation
are promulgated in this manner.
However, orders-in-council are also sometimes used by the United Kingdom government to push through measures which are unpopular locally, and would be difficult to pass using the normal democratic process. Recent examples of this include the abolition of the death penalty for murder in 1991, and the decriminalisation
of homosexuality
in 2000.
Generally speaking, commercial law
is relatively well developed in the British Virgin Islands. The company law and insolvency law statutes are cutting edge. New legislation has been introduced to try to foster e-commerce in the jurisdiction. Other legislation is slightly variable; legislation relating to arbitration
and bills of exchange are not so modern, but still operate effectively. Some legislation needs updating. The Conveyancing and Law of Property Act (Cap 220) dated from 1967, and still contains provisions clarifying when a wife may hold property in her own name.
to speak of. In fact, the position is actually the reverse. A number of specific statutory monopolies
are protected and preserved by legislation in the Territory, and in other areas, new entrants to the markets are carefully scrutinised, and may be barred from entering where they might provide competition for local businesses.
codes in the world. Up until 1984 all incorporations in the British Virgin Islands were made under the Companies Act (Cap 285), which was originally passed in 1885. In 1984, the Territory incorporated the International Business Companies Act
, which provided a sophisticated and updated legal structure in which to incorporate International Business Companies
, and was widely copied by other tax haven
s. In 2004, the BVI Business Companies Act
, 2004 was incorporated, and for a year it was possible to incorporate a company under any of the three acts. However, from 1 January 2006 it was no longer possible to incorporate under the International Business Companies Act (which was subsequently repealed), and from 1 January 2008 it will no longer be possible to incorporate under the Companies Act, leaving the BVI Business Companies Act, 2004 as the sole corporate statute.
The BVI Business Companies Act is based largely on New Zealand company law, but has been modified to include many of the characteristic features of offshore financial centre
s (such as removing restrictions on financial assistance and thin capitalisation
, and permitting distribution in specie
). It has also adopted some slightly novel and radical steps, such as abolishing the concept of share capital
and rules relating to share premium. Some of these developments were a little advanced even for the offshore market, and have taken some time to bed down. The Act has now been copied wholesale by the Isle of Man
, and it remains to be seen if the Act becomes as widely copied as the old International Business Companies Act.
It is also possible to form limited liability partnership
s in the British Virgin Islands under the Partnerships Act, 1994.
, bankruptcy
and liquidation
is regulated by the Insolvency Act, 2003 and the Insolvency Rules, 2005 in the British Virgin Islands. The Act is broadly based upon the Insolvency Act 1986
of the United Kingdom (without the changes brought into effect by the UK's Enterprise Act 2002
), but modified in certain specific regards in relation to the jurisdiction's role as an offshore centre. The legislation includes the ISDA
model netting
laws to facilitate set-off
upon a credit event
in derivatives
transactions. It also contains specific "safe harbour" provisions relating to vulnerable transactions (principally undervalue transaction
s, unfair preference
s and voidable floating charge
s) on an insolvency, to protect structured finance
transactions.
Financial services in the British Virgin Islands are regulated by the BVI Financial Services Commission
(usually abbreviated to FSC).
in the British Virgin Islands, the effective rate is zero. There is no capital gains tax
, gift tax
, sales tax
, value added tax
or inheritance tax
. The only real tax burdens imposed in the jurisdiction are:
The British Virgin Islands generally appears on most lists of recognised tax haven
s.
. By 2010 the Premier, Ralph O'Neal had already called for a further constitutional review.
The British Virgin Islands constitution focus heavily on a distinct cultural identity, contain commitments to uphold human rights
, the rule of law
, and professes a national belief in God
. Despite the strong professed protection of human rights and equal treatment, the constitution expressly preserves the right to discriminate against non-belongers in relation to taxation and employment. The constitution also calls for the formation of a number of committees to promote the constitutional development on the Territory, most of which have never been formed.
is almost entirely based upon English common law. The British Virgin Islands has no equivalent of the Contract (Rights of Third Parties) Act 1999, and applies strict privity of contract
.
of the Territory was consolidated into a single piece of legislation, the Criminal Code, 1997
. Although it was generally regarded as desirable to consolidate all of the criminal laws into a single source, some criticisms have been made at the "warts and all" approach taken to common law offences. For example, in relation to the law of rape
, the Code provides that a man cannot be guilty of raping his wife, even though this has not been the rule at common law since 1991.
Generally speaking, most serious criminal offences in the jurisdiction are dealt with under the same principles as the original English common law, and specific English Victorian statutes (such as the Offences Against the Person Act, 1861
).
The death penalty was abolished for murder in 1991 (controversially), and was subsequently also removed for the last remaining offences (piracy
and treason
) in 2001.
in the British Virgin Islands has only ever undergone spasmodic and periodic reform. The principle legislation dealing with property rights is the Conveyancing and Law of Property Act (Cap 220), which is based on much earlier English legislation. Tacit recognition that this legislation needs updating is found in the BVI Business Companies Act, 2004, which (to assist structured finance transactions) provides that in relation to a security interest
over shares in a British Virgin Islands company, the parties may completely exclude the effect of the Conveyancing and Law of Property Act.
In relation to real estate, the British Virgin Islands adopted a Torrens registration system
in the early 1970s, which considerably simplified domestic conveyancing. The Cadastral survey
of the islands was completed in 1972, and the new system was almost fully implemented by 1974. Non-residents wishing to purchase property in the British Virgin Islands must obtain a Non-Belongers Land Holding License.
is almost entirely based upon English common law.
and equity is derived directly from English law, but has been modified by legislation to reflect the position of the Territory as an offshore financial centre. The usual features for offshore trust
s are all empowered by statute in the Territory - non-charitable purpose trust
s, extended perpetuity periods, abrogation of the rule in Bartlett v Barclays Bank and widened investment powers.
The leading Privy Council
decision on "imperfect gifts" in T Choithram International SA v Pagarani
[2001] 2 All ER 492 was an appeal from the British Virgin Islands courts.
, and exercised through the Governor
. The constitution also provides for the composition of the Cabinet (referred to under former constitutions as the Executive Council, often still abbreviated locally to "ExCo"). This consists of the Premier
, the Attorney General
and four other ministers. The Governor normally attends and presides over meetings of the Executive Council.
The constitution reserves certain key functions to the Governor, including:
The Governor retains a prerogative power of pardon
, and certain other specific prerogative powers under the constitution.
.
The British Virgin Islands is part of the Eastern Caribbean Supreme Court
circuit. Unusually for its size, the British Virgin Islands has two permanent judges. The British Virgin Islands hosts the Commercial Court of the East Caribbean Supreme Court, which was opened on 9 April 2009. Justice Edward Bannister QC was sworn in, and after initially sitting in temporary accommodation, the new Commercial Court building was officially opened on 4 November 2009.
Appeals from the High Court lie to the Eastern Caribbean Court of Appeal. Final appeal lies to the Privy Council
. Unusually, the British Virgin Islands is one of the relatively few jurisdictions in the region which is opposed to the Caribbean Court of Justice
. The British Virgin Islands Bar Association
has always expressed a strong disinclination to abandon a right of final appeal to the Privy Council.
. The profession is regulated informally by the British Virgin Islands Bar Association
. In 2006 the Government published a Legal Professions Bill, which would bring a more rigorous statutory regulation procedure into effect, but this has not been passed into law.
for the purposes of reviewing and revising the laws of the Territory.
Common law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
and statute
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
, and is based heavily upon English law
English law
English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countries and the United States except Louisiana...
.
Law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
in the British Virgin Islands
British Virgin Islands
The Virgin Islands, often called the British Virgin Islands , is a British overseas territory and overseas territory of the European Union, located in the Caribbean to the east of Puerto Rico. The islands make up part of the Virgin Islands archipelago, the remaining islands constituting the U.S...
tends to be a combination of the very old and the very new. As a leading offshore financial centre, the Territory has extremely modern statutes dealing with company law, insolvency
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
, banking law
Bank regulation
Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. This regulatory structure creates transparency between banking institutions and the individuals and corporations with whom they conduct business, among other things...
, trust law
Trust law
In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another...
, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
and other related matters. However, in a number of areas of law, such as family law
Family law
Family law is an area of the law that deals with family-related issues and domestic relations including:*the nature of marriage, civil unions, and domestic partnerships;...
, the laws of the British Virgin Islands are based upon very old English laws, and can cause some difficulty in modern times. Other areas of law, such as international law
International law
Public international law concerns the structure and conduct of sovereign states; analogous entities, such as the Holy See; and intergovernmental organizations. To a lesser degree, international law also may affect multinational corporations and individuals, an impact increasingly evolving beyond...
, are essentially regulated externally through the Foreign and Commonwealth Office
Foreign and Commonwealth Office
The Foreign and Commonwealth Office, commonly called the Foreign Office or the FCO is a British government department responsible for promoting the interests of the United Kingdom overseas, created in 1968 by merging the Foreign Office and the Commonwealth Office.The head of the FCO is the...
in London by Order in Council. A large body of the laws of the British Virgin Islands consists of the common law, which continually updates itself through judicial precedent in the Territory and in other common law countries.
The British Virgin Islands is a dependent territory
Dependent territory
A dependent territory, dependent area or dependency is a territory that does not possess full political independence or sovereignty as a State, and remains politically outside of the controlling state's integral area....
of the United Kingdom. Although the local legislature and courts are independent from the United Kingdom, the British Government deals with all international relations on behalf of the Territory, although this may change in the near future in relation to ongoing constitutional negotiations (see below under Constitutional law - developments). The British Virgin Islands does not have a separate vote at the United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
.
Legal history
Montagu Bertie, 2nd Earl of Lindsey
Montagu Bertie, 2nd Earl of Lindsey, 15th Baron Willoughby de Eresby, KG, PC was the eldest son of Robert Bertie, 1st Earl of Lindsey and his wife Elizabeth Montagu, daughter of Edward Montagu, 1st Baron Montagu of Boughton.-Early life:...
. The British expelled the Dutch in 1672 during the Third Anglo-Dutch War
Third Anglo-Dutch War
The Third Anglo–Dutch War or Third Dutch War was a military conflict between England and the Dutch Republic lasting from 1672 to 1674. It was part of the larger Franco-Dutch War...
, but later evinced an intention to return the islands to the Dutch. They later resiled from this position and in 1698 the British government took the view that the Territory was a British possession (see generally: History of the British Virgin Islands
History of the British Virgin Islands
The History of the British Virgin Islands is usually, for convenience, broken up into five separate periods:* Pre-Columbian Amerindian settlement, up to an uncertain date* Nascent European settlement, from approximately 1612 until 1672...
).
It was not until 1773 that the British Virgin Islands actually had its own legislature. Prior to that date laws were extended to the Territory by the legislature of the Leeward Islands
Leeward Islands
The Leeward Islands are a group of islands in the West Indies. They are the northern islands of the Lesser Antilles chain. As a group they start east of Puerto Rico and reach southward to Dominica. They are situated where the northeastern Caribbean Sea meets the western Atlantic Ocean...
in Antigua
Antigua
Antigua , also known as Waladli, is an island in the West Indies, in the Leeward Islands in the Caribbean region, the main island of the country of Antigua and Barbuda. Antigua means "ancient" in Spanish and was named by Christopher Columbus after an icon in Seville Cathedral, Santa Maria de la...
. Some of these laws are still in force in the British Virgin Islands, such as the Common Law (Declaration of Application) Act (Cap 13), which dates from 1705. Doubts as to the validity of those statutes were removed by the Colonial Laws Validity Act 1865
Colonial Laws Validity Act 1865
The Colonial Laws Validity Act 1865 is an Act of the Parliament of the United Kingdom. Its long title is "An Act to remove Doubts as to the Validity of Colonial Laws"....
.
The Legislative Assembly first sat on 27 January 1774, however, it took a full further decade for a constitutional framework to be settled. Part of the problem was that the islands were so thinly populated, it was almost impossible to constitute the organs of government.
In 1776 George Suckling
George Suckling
George Suckling was a lawyer who was appointed to be the first Chief Justice of the British Virgin Islands in 1776. Suckling's appointment was not popular in the islands, which were at the time a notorious haunt for the lawless and for those seeking to evade their creditors elsewhere...
was appointed as Chief Justice, although he did not arrive until 1778, due to political maneuvering in the Territory. Having arrived, the legislature eventually got rid of Suckling by declining to pass the Court Bill. The first law ever to be passed by a local legislature in the British Virgin Islands concerned punishments for runaway slaves. The second provided a mechanism for settling longstanding boundary disputes. Both no doubt reflected the concerns of the islands free inhabitants.
But the Governor-General refused to assent to any bills until a Court Bill was passed. Bills passed by the Legislative Assembly needed to be approved by the Governor-General in Antigua, and early legislation was often vetoed. Laws could also still be passed by the Legislative Assembly of the Leeward Islands under a quasi-federal system, and these applied to all of the British territories in the Leeward Islands. However, the Governor-General used this veto force the Virgin Islands to pass legislation establishing a court.
Eventually the Court Bill was passed in 1783 together with a Bill validating titles as a form of compromise. Nonetheless, it took some time to obtain a Chief Justice whose appointment could be confirmed.
However, abolition of slavery and a collapse in sugar prices in the 19th century lead to the virtual economic ruin of the islands, and although the legislature limped along for some time, it was eventually formally dissolved in 1901. After the famous march of 1947 the legislature was restored in 1950, and permanent self government was devolved in 1967.
Arthur Hodge
In international terms, probably the most significant event which occurred in the Territory's legal history was the trial and executionCapital punishment
Capital punishment, the death penalty, or execution is the sentence of death upon a person by the state as a punishment for an offence. Crimes that can result in a death penalty are known as capital crimes or capital offences. The term capital originates from the Latin capitalis, literally...
of Arthur William Hodge
Arthur William Hodge
Arthur William Hodge was a plantation farmer, member of the Council and Legislative Assembly, and slave owner in the British Virgin Islands, who was hanged on 8 May 1811, for the murder of one of his slaves...
for the murder of a slave; the only time a British subject was ever executed for killing a slave.
Common law and equity
Principles of English common lawCommon law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
and equity are extended to the British Virgin Islands by statute
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
.
The Common Law (Declaration of Application) Act (Cap 13) provides:
The West Indies Associated States Supreme Court (Virgin Islands) Act (Cap 80) provides:
Legislation
Local statuteStatute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
s are passed by the Legislative Council
Legislative Council of the British Virgin Islands
The House of Assembly of the British Virgin Islands, until 2007 known as the Legislative Council, has 15 members; 13 directly elected for four year terms—nine in single-seat constituencies and four "at large"—one ex-officio member and one Speaker chosen from outside the house.The first...
in the British Virgin Islands. Statutes are subject to Royal Assent
Royal Assent
The granting of royal assent refers to the method by which any constitutional monarch formally approves and promulgates an act of his or her nation's parliament, thus making it a law...
by the Governor
Governor of the British Virgin Islands
The Governor of the British Virgin Islands is the representative of the British monarch in the United Kingdom's overseas territory of British Virgin Islands. The Governor is appointed by the monarch on the advice of the British government...
as the Queen's representative in the Territory, but a refusal to grant Royal Assent has never yet occurred in the jurisdiction during the modern era.
Periodically, the statutes of the British Virgin Islands are consolidated and issued as the Revised Laws of the Virgin Islands. This was most recently done in 1991. In such revisions, all laws are given a specific chapter number (usually abbreviated to "Cap."). Hence the Arbitration Act is usually cited as the Arbitration Act (Cap 6). Legislation passed after 1991 is usually referred to by year, so the Merchant Shipping Act is usually referred to as the Merchant Shipping Act, 2001, but may be referred to in long form as the Merchant Shipping Act (No 13 of 2001).
On several occasions since 1991 there has been discussion of producing a new revised set of the laws of the Virgin Islands. But the exercise would be extremely challenging today, given the pace of legislative change, and in practical terms it seems improbable that any another consolidated version will be prepared for the foreseeable future.
Orders in Council
Orders in Council are a form of promulgated legislation issued by the British Government. Usually they deal with routine matters which it would be impractical to burden the local legislature with, such as implementing United Nations Security CouncilUnited Nations Security Council
The United Nations Security Council is one of the principal organs of the United Nations and is charged with the maintenance of international peace and security. Its powers, outlined in the United Nations Charter, include the establishment of peacekeeping operations, the establishment of...
resolutions into law. Various other highly technical aspects of legislation are dealt with by way of Order in Council; for example, all of the jurisdiction's laws relating to civil aviation
Civil aviation
Civil aviation is one of two major categories of flying, representing all non-military aviation, both private and commercial. Most of the countries in the world are members of the International Civil Aviation Organization and work together to establish common standards and recommended practices...
are promulgated in this manner.
However, orders-in-council are also sometimes used by the United Kingdom government to push through measures which are unpopular locally, and would be difficult to pass using the normal democratic process. Recent examples of this include the abolition of the death penalty for murder in 1991, and the decriminalisation
Decriminalization
Decriminalization or Decriminalisation is the abolition of criminal penalties in relation to certain acts, perhaps retroactively, though perhaps regulated permits or fines might still apply . The reverse process is criminalization.Decriminalization reflects changing social and moral views...
of homosexuality
Homosexuality
Homosexuality is romantic or sexual attraction or behavior between members of the same sex or gender. As a sexual orientation, homosexuality refers to "an enduring pattern of or disposition to experience sexual, affectional, or romantic attractions" primarily or exclusively to people of the same...
in 2000.
Commercial law
Commercial law
Commercial law is the body of law that governs business and commercial transactions...
is relatively well developed in the British Virgin Islands. The company law and insolvency law statutes are cutting edge. New legislation has been introduced to try to foster e-commerce in the jurisdiction. Other legislation is slightly variable; legislation relating to arbitration
Arbitration
Arbitration, a form of alternative dispute resolution , is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons , by whose decision they agree to be bound...
and bills of exchange are not so modern, but still operate effectively. Some legislation needs updating. The Conveyancing and Law of Property Act (Cap 220) dated from 1967, and still contains provisions clarifying when a wife may hold property in her own name.
Competition law
In the British Virgin Islands, there is almost no competition lawCompetition law
Competition law, known in the United States as antitrust law, is law that promotes or maintains market competition by regulating anti-competitive conduct by companies....
to speak of. In fact, the position is actually the reverse. A number of specific statutory monopolies
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
are protected and preserved by legislation in the Territory, and in other areas, new entrants to the markets are carefully scrutinised, and may be barred from entering where they might provide competition for local businesses.
Company law
The British Virgin Islands has one of the most sophisticated company lawCorporate law
Corporate law is the study of how shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community and the environment interact with one another. Corporate law is a part of a broader companies law...
codes in the world. Up until 1984 all incorporations in the British Virgin Islands were made under the Companies Act (Cap 285), which was originally passed in 1885. In 1984, the Territory incorporated the International Business Companies Act
International Business Companies Act
The International Business Companies Act, 1984 was a statute of the British Virgin Islands which permitted the incorporation of International Business Companies within the Territory...
, which provided a sophisticated and updated legal structure in which to incorporate International Business Companies
International business company
An international business company or international business corporation is an offshore company formed under the laws of some jurisdictions as untaxed company which is not permitted to engage in business within the jurisdiction in which it is incorporated...
, and was widely copied by other tax haven
Tax haven
A tax haven is a state or a country or territory where certain taxes are levied at a low rate or not at all while offering due process, good governance and a low corruption rate....
s. In 2004, the BVI Business Companies Act
BVI Business Companies Act
The BVI Business Companies Act is a statute of the British Virgin Islands relating to the formation of all companies in the British Virgin Islands, both offshore companies and local companies...
, 2004 was incorporated, and for a year it was possible to incorporate a company under any of the three acts. However, from 1 January 2006 it was no longer possible to incorporate under the International Business Companies Act (which was subsequently repealed), and from 1 January 2008 it will no longer be possible to incorporate under the Companies Act, leaving the BVI Business Companies Act, 2004 as the sole corporate statute.
The BVI Business Companies Act is based largely on New Zealand company law, but has been modified to include many of the characteristic features of offshore financial centre
Offshore financial centre
An offshore financial centre , though not precisely defined, is usually a small, low-tax jurisdiction specializing in providing corporate and commercial services to non-resident offshore companies, and for the investment of offshore funds....
s (such as removing restrictions on financial assistance and thin capitalisation
Thin capitalisation
A company said to be thinly capitalised when its capital is made up of a much greater proportion of debt than equity, i.e. its gearing, or leverage, is too high...
, and permitting distribution in specie
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
). It has also adopted some slightly novel and radical steps, such as abolishing the concept of share capital
Share capital
Share capital or issued capital or capital stock refers to the portion of a company's equity that has been obtained by trading stock to a shareholder for cash or an equivalent item of capital value...
and rules relating to share premium. Some of these developments were a little advanced even for the offshore market, and have taken some time to bed down. The Act has now been copied wholesale by the Isle of Man
Isle of Man
The Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
, and it remains to be seen if the Act becomes as widely copied as the old International Business Companies Act.
It is also possible to form limited liability partnership
Limited liability partnership
A limited liability partnership is a partnership in which some or all partners have limited liability. It therefore exhibits elements of partnerships and corporations. In an LLP one partner is not responsible or liable for another partner's misconduct or negligence. This is an important...
s in the British Virgin Islands under the Partnerships Act, 1994.
Insolvency law
The law relating to insolvencyInsolvency
Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...
, bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
and liquidation
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
is regulated by the Insolvency Act, 2003 and the Insolvency Rules, 2005 in the British Virgin Islands. The Act is broadly based upon the Insolvency Act 1986
Insolvency Act 1986
The Insolvency Act 1986 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.-History:...
of the United Kingdom (without the changes brought into effect by the UK's Enterprise Act 2002
Enterprise Act 2002
The Enterprise Act 2002 is an Act of the Parliament of the United Kingdom which made major changes to UK competition law with respect to mergers and also changed the law governing insolvency bankruptcy.-Structure:*Part 1 The Office of Fair Trading...
), but modified in certain specific regards in relation to the jurisdiction's role as an offshore centre. The legislation includes the ISDA
International Swaps and Derivatives Association
The International Swaps and Derivatives Association is a trade organization of participants in the market for over-the-counter derivatives....
model netting
Netting
In general, netting means to allow a positive value and a negative value to set-off and partially or entirely cancel each other out.In the context of credit risk, there are at least three specific types of netting:...
laws to facilitate set-off
Set-off (law)
In law, a set-off is a statutory defense to the whole or to a portion of a plaintiff's claim. It had no existence under the English common law, being created by 2 Geo. II c. 22 for the relief of insolvent debtors, although set-off was recognized in equity...
upon a credit event
Credit event
A credit event is the financial term used to describe either:* A general default event related to a legal entity's previously agreed financial obligation. In this case, a legal entity fails to meet its obligation on any significant financial transaction...
in derivatives
Derivative (finance)
A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...
transactions. It also contains specific "safe harbour" provisions relating to vulnerable transactions (principally undervalue transaction
Undervalue transaction
An undervalue transaction is a transaction entered into by a company who subsequently goes into bankruptcy which the court orders be set aside, usually upon the application of a liquidator for the benefit of the debtor's creditors....
s, unfair preference
Unfair preference
An unfair preference is a legal term arising in bankruptcy law where a person or company transfers assets or pays a debt to a creditor shortly before going into bankruptcy, that payment or transfer can be set aside on the application of the liquidator or trustee in bankruptcy as an unfair...
s and voidable floating charge
Voidable floating charge
In law, a voidable floating charge refers to a floating charge entered into shortly prior to the company going into liquidation which is void or unenforceable in whole or in part under applicable insolvency legislation....
s) on an insolvency, to protect structured finance
Structured finance
Structured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid lawsStructured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid laws...
transactions.
Financial services
A substantial body of British Virgin Islands law is dedicated to the regulation of what are collectively referred to as "financial services". This broadly means offshore business which requires specific regulation. The key statutes dealing with financial services are:- Securities and Investment Business Act, 2010
- Banks and Trust Companies Act, 1990
- Insurance Act, 1994
- Company Management Act, 1990
- Money Services Bill, 2007 (not yet in force)
Financial services in the British Virgin Islands are regulated by the BVI Financial Services Commission
British Virgin Islands Financial Services Commission
The BVI Financial Services Commission is an autonomous regulatory authority responsible for the regulation, supervision and inspection of all financial services in and from within the British Virgin Islands, including insurance, banking, trustee business, company management, mutual funds business...
(usually abbreviated to FSC).
Tax law
The British Virgin Islands has almost no taxation. Although there is technically income taxIncome tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
in the British Virgin Islands, the effective rate is zero. There is no capital gains tax
Capital gains tax
A capital gains tax is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property...
, gift tax
Gift tax
A gift tax is a tax imposed on the gratuitous transfer of ownership of property. The United States Internal Revenue Service says a gift is "Any transfer to an individual, either directly or indirectly, where full consideration is not received in return."When a taxable gift in the form of cash,...
, sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
, value added tax
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
or inheritance tax
Inheritance tax
An inheritance tax or estate tax is a levy paid by a person who inherits money or property or a tax on the estate of a person who has died...
. The only real tax burdens imposed in the jurisdiction are:
- Payroll taxPayroll taxPayroll tax generally refers to two different kinds of similar taxes. The first kind is a tax that employers are required to withhold from employees' wages, also known as withholding tax, pay-as-you-earn tax , or pay-as-you-go tax...
on employees within the Territory. - Stamp dutyStamp dutyStamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions. A physical stamp had to be attached to or impressed upon the document to denote that stamp duty...
, which usually only applies to transfers of land, and transfers of sharesStockThe capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
in companies which own land. - Customs import duty.
- Land tax and house tax.
- EU withholding tax on interest payments to individuals resident in the EUEuropean UnionThe European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
who have not elected to exchange information. - Various minor ancillary taxes and permit fees.
The British Virgin Islands generally appears on most lists of recognised tax haven
Tax haven
A tax haven is a state or a country or territory where certain taxes are levied at a low rate or not at all while offering due process, good governance and a low corruption rate....
s.
Constitutional law
The British Virgin Islands is currently organised under its fourth constitution, promulgated in 2007, which represents a sizeable turnover given that the first was only obtained in 1950. The most recent constitution came into effect fully after the 2007 general electionBritish Virgin Islands general election, 2007
The British Virgin Islands general election, 2007 was held in the British Virgin Islands on 20 August 2007. The result was a landslide victory for the opposition Virgin Islands Party over the incumbent National Democratic Party ....
. By 2010 the Premier, Ralph O'Neal had already called for a further constitutional review.
The British Virgin Islands constitution focus heavily on a distinct cultural identity, contain commitments to uphold human rights
Human rights
Human rights are "commonly understood as inalienable fundamental rights to which a person is inherently entitled simply because she or he is a human being." Human rights are thus conceived as universal and egalitarian . These rights may exist as natural rights or as legal rights, in both national...
, the rule of law
Rule of law
The rule of law, sometimes called supremacy of law, is a legal maxim that says that governmental decisions should be made by applying known principles or laws with minimal discretion in their application...
, and professes a national belief in God
God
God is the English name given to a singular being in theistic and deistic religions who is either the sole deity in monotheism, or a single deity in polytheism....
. Despite the strong professed protection of human rights and equal treatment, the constitution expressly preserves the right to discriminate against non-belongers in relation to taxation and employment. The constitution also calls for the formation of a number of committees to promote the constitutional development on the Territory, most of which have never been formed.
Contract law
British Virgin Islands contract lawContract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
is almost entirely based upon English common law. The British Virgin Islands has no equivalent of the Contract (Rights of Third Parties) Act 1999, and applies strict privity of contract
Privity of contract
The doctrine of privity in the common law of contract provides that a contract cannot confer rights or impose obligations arising under it on any person or agent except the parties to it....
.
Criminal law
In 1997, almost all of the criminal lawCriminal law
Criminal law, is the body of law that relates to crime. It might be defined as the body of rules that defines conduct that is not allowed because it is held to threaten, harm or endanger the safety and welfare of people, and that sets out the punishment to be imposed on people who do not obey...
of the Territory was consolidated into a single piece of legislation, the Criminal Code, 1997
British Virgin Islands Criminal Code
The British Virgin Islands Criminal Code is a statute of the British Virgin Islands which consolidates almost all of the indictable offences under the Territory's criminal law....
. Although it was generally regarded as desirable to consolidate all of the criminal laws into a single source, some criticisms have been made at the "warts and all" approach taken to common law offences. For example, in relation to the law of rape
Rape
Rape is a type of sexual assault usually involving sexual intercourse, which is initiated by one or more persons against another person without that person's consent. The act may be carried out by physical force, coercion, abuse of authority or with a person who is incapable of valid consent. The...
, the Code provides that a man cannot be guilty of raping his wife, even though this has not been the rule at common law since 1991.
Generally speaking, most serious criminal offences in the jurisdiction are dealt with under the same principles as the original English common law, and specific English Victorian statutes (such as the Offences Against the Person Act, 1861
Offences Against The Person Act 1861
The Offences against the Person Act 1861 is an Act of the Parliament of the United Kingdom of Great Britain and Ireland. It consolidated provisions related to offences against the person from a number of earlier statutes into a single Act...
).
The death penalty was abolished for murder in 1991 (controversially), and was subsequently also removed for the last remaining offences (piracy
Piracy
Piracy is an act of robbery or criminal violence at sea. The term can include acts committed on land, in the air, or in other major bodies of water or on a shore. It does not normally include crimes committed against persons traveling on the same vessel as the perpetrator...
and treason
Treason
In law, treason is the crime that covers some of the more extreme acts against one's sovereign or nation. Historically, treason also covered the murder of specific social superiors, such as the murder of a husband by his wife. Treason against the king was known as high treason and treason against a...
) in 2001.
Property law
Property lawProperty law
Property law is the area of law that governs the various forms of ownership in real property and in personal property, within the common law legal system. In the civil law system, there is a division between movable and immovable property...
in the British Virgin Islands has only ever undergone spasmodic and periodic reform. The principle legislation dealing with property rights is the Conveyancing and Law of Property Act (Cap 220), which is based on much earlier English legislation. Tacit recognition that this legislation needs updating is found in the BVI Business Companies Act, 2004, which (to assist structured finance transactions) provides that in relation to a security interest
Security interest
A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation, usually the payment of a debt. It gives the beneficiary of the security interest certain preferential rights in the disposition of secured assets...
over shares in a British Virgin Islands company, the parties may completely exclude the effect of the Conveyancing and Law of Property Act.
In relation to real estate, the British Virgin Islands adopted a Torrens registration system
Torrens title
Torrens title is a system of land title where a register of land holdings maintained by the state guarantees an indefeasible title to those included in the register...
in the early 1970s, which considerably simplified domestic conveyancing. The Cadastral survey
Cadastre
A cadastre , using a cadastral survey or cadastral map, is a comprehensive register of the metes-and-bounds real property of a country...
of the islands was completed in 1972, and the new system was almost fully implemented by 1974. Non-residents wishing to purchase property in the British Virgin Islands must obtain a Non-Belongers Land Holding License.
Tort
British Virgin Islands tort lawTort
A tort, in common law jurisdictions, is a wrong that involves a breach of a civil duty owed to someone else. It is differentiated from a crime, which involves a breach of a duty owed to society in general...
is almost entirely based upon English common law.
Trusts and equity
The British Virgin Islands law relating to trustsTrust law
In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another...
and equity is derived directly from English law, but has been modified by legislation to reflect the position of the Territory as an offshore financial centre. The usual features for offshore trust
Offshore trust
An offshore trust is simply a conventional trust that is formed under the laws of an offshore jurisdiction.Generally offshore trusts are similar in nature and effect to their onshore counterparts; they involve a settlor transferring assets on the trustees to manage for the benefit of a person or...
s are all empowered by statute in the Territory - non-charitable purpose trust
Purpose Trust
A purpose trust is a type of trust which has no beneficiaries, but instead exists for advancing some non-charitable purpose of some kind. In most jurisdictions, such trusts are not enforceable outside of certain limited and anomalous exceptions, but some countries have enacted legislation...
s, extended perpetuity periods, abrogation of the rule in Bartlett v Barclays Bank and widened investment powers.
The leading Privy Council
Judicial Committee of the Privy Council
The Judicial Committee of the Privy Council is one of the highest courts in the United Kingdom. Established by the Judicial Committee Act 1833 to hear appeals formerly heard by the King in Council The Judicial Committee of the Privy Council (JCPC) is one of the highest courts in the United...
decision on "imperfect gifts" in T Choithram International SA v Pagarani
T Choithram International SA v Pagarani
T Choithram International SA v Pagarani and Others [2001] 2 All ER 492 was a decision of the Judicial Committee of the Privy Council on appeal from the British Virgin Islands in relation to the vesting of trust property in a trustee...
[2001] 2 All ER 492 was an appeal from the British Virgin Islands courts.
Other legal disciplines
- Labour law - the British Virgin Islands labour law has been entirely designed around protecting the local workforce from outside competition. Any person who does not have belonger statusBelonger statusBelonger status is a legal classification normally associated with British overseas territories. It refers to people who have close ties to a specific territory, normally by birth and/or ancestry...
requires either a work permit or an exemption; local employers are prohibited from employing foreigners where there is a suitably qualified local person. Labour law in the Territory is codified into a single statute, the Labour Code, 2010. - Immigration lawImmigration lawImmigration law refers to national government policies which control the phenomenon of immigration to their country.Immigraton law, regarding foreign citizens, is related to nationality law, which governs the legal status of people, in matters such as citizenship...
- similarly, the British Virgin Islands takes an extremely restrictive position in relation to immigration. Even birth in the country is not sufficient to grant belongers status (unless the person is born to parents who are themselves belongers). It is possible to be naturalised after a period of long residence, but it is rare to be naturalised after less than 25 years, and often much longer. The British Virgin Islands government has announced as policy that it will only naturalise 25 new belongers each year. Laws in the British Virgin Islands openly discriminate against non-belongers. For example, stamp duty on the purchase of land is 4% for belongers and 12% for non-belongers. - Investigatory laws - because of its position as an offshore financial centre, the British Virgin Islands has regulatory responsibilities which are out of all proportion with its size or economy. The result has been a raft of legislation designed to investigate and curb unlawful tax evasionTax evasionTax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
, money launderingMoney launderingMoney laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
and terrorist financingTerrorist FinancingTerrorist financing came into limelight after the events of terrorism on 9/11. The US passed the USA PATRIOT Act to, among other reasons, attempt thwarting the financing of terrorism and anti-money laundering making sure these were given some sort of adequate focus by US financial institutions...
. The unfortunate result of this is a patchwork quilt of rules of regulations that are extremely complex to follow, even for experienced practitioners and judges. Some of the laws reflect bilateral agreements with specific countries, some relate to specific times of crime, and some have generic application. Unfortunately a raft of conflicting international agreements, initiatives and treaties with conflicting standards and aims, any kind of rationalisation or consolidation seems wholly improbable.
Executive
Under the British Virgin Islands constitution, executive power is vested in the MonarchBritish monarchy
The monarchy of the United Kingdom is the constitutional monarchy of the United Kingdom and its overseas territories. The present monarch, Queen Elizabeth II, has reigned since 6 February 1952. She and her immediate family undertake various official, ceremonial and representational duties...
, and exercised through the Governor
Governor of the British Virgin Islands
The Governor of the British Virgin Islands is the representative of the British monarch in the United Kingdom's overseas territory of British Virgin Islands. The Governor is appointed by the monarch on the advice of the British government...
. The constitution also provides for the composition of the Cabinet (referred to under former constitutions as the Executive Council, often still abbreviated locally to "ExCo"). This consists of the Premier
Heads of government of the British Virgin Islands
The Head of Government of the British Virgin Islands is the Premier, until 2007 known as the Chief Minister.Party affiliations are as follows:*VIP—Virgin Islands Party*NDP—National Democratic Party...
, the Attorney General
Attorney General
In most common law jurisdictions, the attorney general, or attorney-general, is the main legal advisor to the government, and in some jurisdictions he or she may also have executive responsibility for law enforcement or responsibility for public prosecutions.The term is used to refer to any person...
and four other ministers. The Governor normally attends and presides over meetings of the Executive Council.
The constitution reserves certain key functions to the Governor, including:
- external affairs, subject to certain specifically excluded matters;
- defence, including the armed forces;
- internal security, including the Police Force;
- the terms and conditions of service of persons holding or acting in public offices; and
- the administration of the courts.
The Governor retains a prerogative power of pardon
Pardon
Clemency means the forgiveness of a crime or the cancellation of the penalty associated with it. It is a general concept that encompasses several related procedures: pardoning, commutation, remission and reprieves...
, and certain other specific prerogative powers under the constitution.
Legislature
The British Virgin Islands legislature consists of the House of Assembly of the British Virgin Islands (known under previous constitutions as the Legislative Council of the British Virgin Islands, often still abbreviated locally to "LegCo"), and is headed by the Monarch. The Legislative Council consists of 13 elected members; 9 tied to electoral districts, and 4 "at large" seats. Belonger status is a requirement to be elected to the Legislative Council.Judiciary
Low level disputes and petty crimes in the British Virgin Islands are resolved in the Magistrate's Court. More serious matters are dealt with in the High CourtHigh Court of Justice
The High Court of Justice is, together with the Court of Appeal and the Crown Court, one of the Senior Courts of England and Wales...
.
The British Virgin Islands is part of the Eastern Caribbean Supreme Court
Eastern Caribbean Supreme Court
The Eastern Caribbean Supreme Court is a superior Court of record for the Organisation of Eastern Caribbean States , including six independent states: Antigua and Barbuda, the Commonwealth of Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines and three British...
circuit. Unusually for its size, the British Virgin Islands has two permanent judges. The British Virgin Islands hosts the Commercial Court of the East Caribbean Supreme Court, which was opened on 9 April 2009. Justice Edward Bannister QC was sworn in, and after initially sitting in temporary accommodation, the new Commercial Court building was officially opened on 4 November 2009.
Appeals from the High Court lie to the Eastern Caribbean Court of Appeal. Final appeal lies to the Privy Council
Judicial Committee of the Privy Council
The Judicial Committee of the Privy Council is one of the highest courts in the United Kingdom. Established by the Judicial Committee Act 1833 to hear appeals formerly heard by the King in Council The Judicial Committee of the Privy Council (JCPC) is one of the highest courts in the United...
. Unusually, the British Virgin Islands is one of the relatively few jurisdictions in the region which is opposed to the Caribbean Court of Justice
Caribbean Court of Justice
The Caribbean Court of Justice is the judicial institution of the Caribbean Community . Established in 2001, it is based in Port of Spain, Trinidad and Tobago....
. The British Virgin Islands Bar Association
British Virgin Islands Bar Association
The British Virgin Islands Bar Association is a voluntary membership organisation that regulates the legal profession in the British Virgin Islands . It was founded in 1976, but residency requirements for members mean that not all members of the British Virgin Islands legal profession are members...
has always expressed a strong disinclination to abandon a right of final appeal to the Privy Council.
Legal profession
The legal profession in the British Virgin Islands is a fused professionFused profession
Fused profession is a term relating to jurisdictions where the legal profession is not divided between barristers and solicitors.It is generally used in the context of Commonwealth countries which have provided by statute for there to be a single profession of "Barrister and Solicitor".In practice,...
. The profession is regulated informally by the British Virgin Islands Bar Association
British Virgin Islands Bar Association
The British Virgin Islands Bar Association is a voluntary membership organisation that regulates the legal profession in the British Virgin Islands . It was founded in 1976, but residency requirements for members mean that not all members of the British Virgin Islands legal profession are members...
. In 2006 the Government published a Legal Professions Bill, which would bring a more rigorous statutory regulation procedure into effect, but this has not been passed into law.
Law reform
The British Virgin Islands has a dedicated Law CommissionLaw Commission
A Law Commission or Law Reform Commission is an independent body set up by a government to conduct law reform; that is, to consider the state of laws in a jurisdiction and make recommendations or proposals for legal changes or restructuring...
for the purposes of reviewing and revising the laws of the Territory.