Liquidating a bahamian company

17-Jun-2016 02:07

The memorandum of association is filed at the Corporate Registry and is open to public inspection, thereby giving constructive notice to third parties of any limitations in the objects of the company.

Likewise, the company's borrowing powers may be restricted in the memorandum of association, thereby further reducing the SPV's bankruptcy risk.

Accordingly, The Bahamas is not on the FATF blacklist and will not be on the forthcoming OECD blacklist.

The company's articles of association may contain restrictions on the ability of the board of directors and/or the shareholders to place the company into voluntary dissolution.There are no provisions under Bahamian law that would delay or prevent a secured party from promptly liquidating securities collateral or setting off against cash collateral if the counterparty SPV were to become subject to winding-up or insolvency proceedings governed by Bahamian law.However, if the security agreement did not grant the secured party a power of sale, the secured party would have to apply to the Bahamian court for an order to sell the collateral.However, the act provides that a company may restrict its objects in its memorandum of association.Accordingly, an SPV may limit its activities to the furtherance of the securitization transaction only.

The company's articles of association may contain restrictions on the ability of the board of directors and/or the shareholders to place the company into voluntary dissolution.There are no provisions under Bahamian law that would delay or prevent a secured party from promptly liquidating securities collateral or setting off against cash collateral if the counterparty SPV were to become subject to winding-up or insolvency proceedings governed by Bahamian law.However, if the security agreement did not grant the secured party a power of sale, the secured party would have to apply to the Bahamian court for an order to sell the collateral.However, the act provides that a company may restrict its objects in its memorandum of association.Accordingly, an SPV may limit its activities to the furtherance of the securitization transaction only.Accordingly, the law of the location of the collateral will govern the matters of perfection, recognition and enforcement.