Five questions lenders should ask before contracting with BVI counterparties
Lenders of BVI contracting parties are most often concerned with whether the Company they are contracting with has the capacity to enter into the transaction. However, there are a number of other questions which a prudent lender needs to ask, and such a lender would also be wise to seek specialist BVI law advice before signing on the dotted line. The following checklist provides an excellent starting point for any lender who intends to enter into contractual arrangements with a BVI Company.
- Does the Company exist and is it in good standing under BVI law?
- What type of Company is it?
- Does the Company have the capacity under its M&As to enter into contractual arrangements with the Lender?
- Who are the Company’s directors and shareholders?
- Has the Company been properly authorised to enter into the transaction – and does the individual purporting to act for and bind the Company have the power to do so?