LEGCO PASSES FOUR BILLS

Legislators approved four bills during the Sixth Sitting of the First Session of the Fifteenth Legislative Council of the Virgin Islands held at Council Chambers in Road Town on Tuesday September 30^th.

The Virgin Islands Special Trusts Act, 2003; Trustee (Amendment) Act, 2003; Property (Miscellaneous Provisions) Act, 2003 and the Audit Act, 2003, all had their Second and Third Readings.

In explaining the objects and reasons of the Bill entitled Virgin Islands Special Trusts Act, 2003, Chief Minister Dr. the Honourable D. Orlando Smith pointed out that the setting up trusts is one of the services offered by the financial services industry.

“And as in other areas of the financial services industry, this government is committed to keeping abreast of new initiatives that will maintain the viability of this sector,” he declared.

Chief Minister Smith explained that this bill is designed to meet the growing international need for a satisfactory legal mechanism to facilitate the succession planning of family corporate businesses. 

“The enactment of the Bill will attract reputable company and trust business to the BVI and will enable the territory to compete in the special trust market with the Cayman Islands, which enacted similar legislation since 1997,” he said.  He said the proposed legislation would increase government revenues from company registration, trust licensing fees and trust duty.  It would also expand the business of service providers, create local employment opportunities, provide the territory with another marketing opportunity and cement the territory’s image as a reputable and progressive trust jurisdiction.

Leader of the Opposition Hon. Ralph T. O’Neal supported the Bill, but cautioned that the territory must be aware that it should not be too competitive in the field pricing, so it can’t compete. He said service in offices must be first class, pointing out that the BVI seems to be slipping in that area.

The Trustee (Amendment) Act, 2003 was aimed at amending a section of the act to enable a sole personal representative or trustee to exercise the power to compromise claims, so that the costs and delays arising from the appointment of a second trustee would not arise.

It would also repeal and replace section 18 to prevent the exercise of a power of appointment of trust property among two or more objects of the trust from being invalid on the ground that only an illusory share is appointed or left un-appointed to devolve upon any one or more of the objects of the power or on the ground that an object of the power has been excluded from the appointment.

Other features include enhancing the jurisdiction of the High Court to vary trusts; enabling a trust instrument to provide for the appointment of persons to consent to variations to a trust on behalf of persons who are incapable of giving their consent; restricting the use of flee clauses by virtue of which the proper law of a trust may be changed from that of one jurisdiction to another and increasing trust duty from $50 to $100 and the annual penalty for failure to pay trust duty from $100-$200.

Regarding the Property (Miscellaneous Provisions) Act, 2003, Chief Minister Smith said the bill would abolish the requirement for deeds executed by individuals to be sealed.  It would also enable bodies corporate to acquire and hold any real or personal property in joint tenancy in the same manner as if they were individuals and the provisions would apply to any trust, instrument or joint tenancy created or executed or purportedly created or executed before, on or after the date on which the proposed Act comes into force and no such trust, instrument or joint tenancy would be invalid by reason only of the fact that it was created or executed or purportedly created or executed prior to that date.

And for the Audit Act, 2003, Deputy Chief Minister and Minister for Finance, Health and Welfare explained that this bill sought to repeal and replace the Audit Ordinance 1970.

“It essentially incorporates the main provisions of the ordinance, but does so in a more explicit manner so that there can be no doubt what duties the Auditor General is to undertake, the reports he is required to prepare and present and the contents of those reports and the powers he may exercise to enable him to effectively carry out his duties,” according to the objects and reasons of the bill.

The Bill also introduced new elements designed to ensure the efficient functioning of the office of the Auditor General and outlined the restrictions applicable in relation to the disclosure of information by the Auditor General and other persons performing duties on behalf of the Auditor General.
“It is hoped that the enactment of this Bill will enhance the independence of the Office of Auditor General and enable the Auditor General and the staff of the Office to more effectively conduct an efficient audit of the accounts of the Legislative Council and all government departments and offices including the Public Service Commission as stipulated in section 66 (2) of the Virgin Islands (Constitution) Order, 1976,” the bill declared.

During Tuesday’s meeting of the Legislative Council, the Deputy Chief Minister and Minister of Finance, Health and Welfare also moved the Introduction and First Readings of the Automatic External Defibrillators Act, 2003.