Assembly votes to enhance law on offshore industry |05 May 2009

During its session last Tuesday afternoon – which was the last for this term as the assembly has now gone into recess – three other Bills submitted for debate were withdrawn. Minister for Finance Danny Faure explained that new issues have come up relating to the Bills and need to be clarified first.

The Bills will be resubmitted during the assembly’s second term, which starts on June 2.
The International Business Companies Amendment Bill 2009 seeks to amend the International Business Companies Act 1994 and received the support of all assembly members.

Explaining why the amendments are necessary, Mr Faure said in the world today a lot of fingers are being pointed at the systems that regulate offshore businesses in many countries.

He said the issue was discussed at the G20 summit in London earlier this month, and many countries such as the US and others in Europe and Asia are under pressure to make changes.

He said Seychelles today is on the white list of the Organisation for Economic Cooperation and Development, but the Seychelles International Business Authority (Siba) is convinced more should be done to ensure we keep this position.

He said the amendments will address areas of weakness to ensure Seychelles remains in the forefront of current developments in the offshore industry.

Changes to the Act include provisions for companies limited by guarantees, removal of the restriction on using a country name in an International Business Company name, and prevention of the use of a product’s registered trademark, whether the name is registered in Seychelles or abroad.

Before the Bill was presented, Siba managing director Steve Fanny gave an overview of the offshore industry and explained all the technicalities of why such amendments are necessary and important for the industry.