On the 12th of December, 2011 the Bahamas witnessed the first step in making the proposed Executive Entities Bill, 2010 as members of the House of Assembly approved a series of Bills that will benefit the nation’s financial service sector. January 09, 2012
Within the first quarter of 2012, legal representatives of Lex Justis are eager to provide the incorporation of ‘Executive Entities’ as part of its catalog of corporate services. The provision of this new financial service product will be made possible by the passage of the new Executive Entities Bill, 2010 into law.
As stated in the Executive Entities Bill, 2010 the overall objective of this new legislation is to provide the basis for the establishment of the Executive Entity as a vehicle to carry out executive functions in wealth preservation structures such as Purpose Trusts, Foundations, and Private Trust Companies. Executive Entities are defined by the Bill as legal entities established by a Charter to perform only executive functions set out in its Articles and has its registered office within the Bahamian jurisdiction. All Executive Entities will be required to be registered in order to become a recognized legal entity as demonstrated by the provision of Certificate of Registration.
The Executive Entities Bill, 2010 also calls for the name of the Executive Entity to end with the words “Executive Entity” or the abbreviation “EE” or “E.E” as the last two words of the name. Counsel & Attorneys -at- Law. “Those individuals or entities who serve as officers or council members will be able to enjoy the benefits of limited liability while overseeing the activities of the wealth management structure.”
According to Attorney McCartney, Executive Entities may be utilized for a number of primary or supplementary purposes, ranging from serving as a protector or enforcement arm of a trust, a shareholder or investment advisor of a private trust company, or other functions that are executive, administrative, fiduciary, or office holding in nature. Although similar to a Bahamian Foundation, Attorney McCartney also confirmed that the Executive Entity differs substantially in that it is designed specifically to carry out executive functions and not to profit beneficiaries or for other wider purposes such as charities or educational scholarship program Executive Entities have no beneficiaries and only hold such assets reasonably required to carry out its executive functions.
“The key advantage of this new vehicle is the ability of the client to get a steady grip on the administration and security of his wealth by establishing an Executive Entity as its Founder and can appoint himself as an officer or council member or other individuals whom he can depend on to watch over his interests,” says Attorney McCartney. “Clients can now enjoy the benefit of having those he can rely on, administer his wealth even after death, without the fear of family bickering or other personal conflicts derailing his final bestowment. The Executive Entity vehicle is as close as you can get to engaging in the affairs a traditional Purpose Trust structure or other wealth management vehicle without breaching its legal and fundamental principles.”
Attorney McCartney further stated that similar to the formation of a Foundation, Executive Entity Charter will be required to state information about its Founder, Officers or Council Members, its registered office and its purpose, and may also include other provisions such as the Founder’s reserved rights or powers, the appointment and authority of its officers, council members and auditors, and the establishment of Articles for the Executive Entity. Similar to most incorporated entities according to the Executive Entities Bill, 2010 the Executive Entity will also be required to hold at least one meeting per year, keep proper accounting records at the registered office, and to ensure that all government fees paid.
The Bill also calls for members of the Executive Entity to appoint an Executive Entity Agent, which may also serve as an officer or as a council member. The main function of the Executive Entity Agents will be to formally accept service of all documents pertaining to legal proceedings involving the Executive Agent or to receive any formal notices and will also hold the same powers and obligations as an officer or a council member of the Executive Entity if it also holds those positions. According to Attorney McCartney only individuals or entities duly licensed as financial and corporate service providers or as licensed trust companies are qualified to be an Executive Entity Agent and must provide written consent to his appointment.
“The Bill also establishes a statutory based standard of care by the Executive Entity Agent in which it is required to act honestly and in the best interest of the Executive Entity. Financial and Corporate Service Provider offering traditional legal services, corporate services and private client services in The Bahamas. We are committed to finding efficient legal solutions to the needs of our local and international clients. Visit our website at http://www.lexjustis.com or call us at (242)676-4208 for more information on the incorporation of an Executive Entity or other aspects of Bahamian law.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/1/prweb9071536.htm