COMPANIES ACT Under review
IT could soon be easier for persons to incorporate companies in Barbados.
If Minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss has his way, those desirous of doing such will no longer require the services of an attorney. According to the Companies Act at Section 4(2), when incorporating a company the applicant must accompany their application with a statutory declaration from a lawyer.
Inniss explained in an interview with The Barbados Advocate that the Companies Act states that the articles of incorporation must be submitted to the Corporate Affairs and Intellectual Property Office together with a statutory declaration, in which the attorney states that to the best of his knowledge and belief the signatories meet certain stipulations under the law.
“Right now the Companies Act right says that in order to incorporate a company you need to have a lawyer, so that even if the person signs it, a lawyer still has to sign it verifying that the person is over 18, of sound mind and not bankrupt. That is not something a lawyer should have to do. I feel it should be easier for an individual to incorporate a company and it is therefore a matter under active consideration by my ministry,” he stated.
The Industry and Small Business Development Minister indicated he has instructed his Ministry to solicit comments from stakeholders on the proposed change to the Act, with the view of getting that feedback soon and hopefully making the change in the not-too-distant future. He added though, that anyone serious about getting into business would be best advised to seek counsel in respect of addressing the complex matters that are part of the formation of a company, including the by-laws and shareholder agreements. However, he reiterated that they should have the option on whether they want to seek that legal advice or not.
Inniss’ comments came as he disclosed that the Section 4(2) is not the only aspect of the Act that is being reviewed at this time. He said they are examining the legislation in its entirety to see where it may be causing some discomfort for companies, so that they can implement solutions to address any challenges. With that in mind, he disclosed that he has asked for comments to be garnered from stakeholders regarding the importance of annual returns, particularly if they are necessary and whether the fees charged are too onerous. He admitted that the annual returns are proving to be quite costly for some unsuspecting company owners in this country, and as such, he noted they may do away with that provision in the Act. (JRT)