WIXLIB

Laws of Saint Christopherand NevisCompanies ActCap 21.031Revision Date: 31 Dec 2002ST CHRISTOPHER AND NEVISCHAPTER 21.03COMPANIES ACTand Subsidiary LegislationRevised Editionshowing the law as at 31 December 2002This is a revised edition of the law, prepared by the Law Revision Commissioner under theauthority of the Law Revision Act, No. 9 of 1986This edition contains a consolidation of the following laws:Companies ActAct 22 of 1996 in force 2nd April, 1997Amended by Act 11 of 1997Act 13 of 1998Act 16 of 1999Act 14 of 2001Companies (Standard Tables) Order – Sections 7 and 222 – SRO 17 of 1997Companies (Fees) Order – Sections 202 and 222 – SRO 18 of 1997Companies (Application of Share Premium) Order – Sections 3, 39 and 222 –SRO 19 of 1997

2Cap 21.03Companies ActLaws of Saint Christopherand NevisRevision Date: 31 Dec 2002Companies (Overseas Branch Register) Order – Sections 49 and 222 –SRO 20 of 1997Companies (Purchase of Own Shares) Order – Section 60 and 222 –SRO 21 of 1997Companies (Winding up Provisions) Order – Sections 189 and 222 –SRO 22 of 1997Financial Services Regulations Order – Sections 222 and 226 – SRO 25 of 1997 –Amended by SROs 45 and 47 of 1997Financial Service (Fees) Order – Sections 222 and 226 – SRO 26 of 1997Financial Service (Business Names) Order – Sections 13, 222 and 226 –SRO 27 of 1997 – Amended by SRO 46 of 1997Financial Service (Prospectuses) Order – Sections 29 and 222 – SRO 28 of 1997Financial Services (Professional Bodies) Order – SRO 29 of 1997

Laws of Saint Christopherand NevisCompanies ActCap 21.033Revision Date: 31 Dec 2002CHAPTER 21.03COMPANIES ACTARRANGEMENT OF SECTIONSPART I – PRELIMINARY . 111.Short Title . 112.Interpretation. 113.Meaning of “holding company”, “subsidiary” and “wholly-ownedsubsidiary” . 14PART II – FORMATION OF COMPANIES AND REGISTRATION. 154.Method of formation . 155.Memorandum of association . 166.Articles of association . 167.Standard Tables . 178.Documents to be delivered to the Registrar . 179.Registration . 1810. Effect of memorandum and articles . 1811. Alteration of memorandum and articles. 1912. Copies of memorandum and articles for members . 19PART III – NAMES . 1913. Requirements as to names. 1914. Change of name . 2015. Power to require change of name. 20PART IV – TYPES OF COMPANIES . 2016. Public companies and private companies . 2017. Consequences of certain actions of private company . 21PART V – CORPORATE CAPACITY AND TRANSACTIONS . 2218. Capacity of company . 2219. No implied notice of public records. 2220. Form of contracts . 2221. Transactions entered into prior to corporate existence . 2322. Common seal . 2323. Official seal for use abroad . 2324. Official seal for share certificates, etc. . 23PART VI – MEMBERSHIP . 2425. Definition of “member” . 2426. Membership of holding company . 24

4Cap 21.03Companies ActLaws of Saint Christopherand NevisRevision Date: 31 Dec 200227. Company without members . 2428. Prohibition of minors and interdicts . 25PART VII – PROSPECTUSES . 2529. Prospectuses . 2530. Compensation for misleading statements in prospectus . 2631. Exemption from liability to pay compensation . 2632. Recovery of compensation . 2733. Criminal liability in relation to prospectuses . 27PART VIII – SHARE CAPITAL . 2734. Nature, transfer and numbering of shares . 2735. Commissions and discounts barred . 2836. Commissions . 2837. Provision for different amounts to be paid on shares . 2938. Alteration of share capital . 2939. Application of share premiums . 3040. Power to issue fractions of shares . 30PART IX – REGISTER OF MEMBERS AND CERTIFICATES . 3141. Register of members . 3142. Transfer of shares and registration . 3243. Certification of transfers . 3244. Location of register . 3345. Inspection of register . 3446. Declaration . 3447. Rectification of register . 3548. Trusts not to be entered on register . 3549. Branch registers. 3550. Share certificates . 3551. Certificates issued to bearer . 3752. Deposit of bearer share certificate . 39PART X – CLASS RIGHTS . 4053. Variation of class rights . 4054. Shareholders’ right to object to variation . 4055. Registration of particulars of special rights . 41PART XI – REDEMPTION AND PURCHASE OF SHARES . 4156. Power to issue redeemable shares . 4157. Financial requirements on redemption . 4358. Power of company to purchase own shares. 4359. Financial assistance by company for purchase of own shares. 4460. Power of the Minister to extend or modify sections 56 to 59. 45

Laws of Saint Christopherand NevisCompanies ActCap 21.035Revision Date: 31 Dec 2002PART XII – REDUCTION OF CAPITAL . 4561. Forfeiture of shares . 4562. Special resolution for reduction of share capital . 4563. Application to the Court for order of confirmation . 4664. Court order confirming reduction . 4765. Registration of act and minute of reduction . 4766. Liability of members on reduced shares . 4867. Penalty for concealing name of creditor, etc. 48PART XIII – ADMINISTRATION . 4868. Registered office . 4869. Company’s name to be displayed at its registered office . 4970. Company’s name to appear in its correspondence . 4971. Particulars in correspondence . 5072. Annual return . 5073. Service of documents . 52PART XIV – DIRECTORS AND SECRETARY . 5274. Directors . 5275. Duties of directors. 5376. Duty of directors to disclose interests . 5377. Consequences of failure to comply with section 76. 5378. Indemnity of officers and secretary . 5479. Disqualification orders. 5580. Personal responsibility for liabilities where person acts while disqualified. 5581. Validity of acts of director . 5582. Secretary . 5583. Qualifications of secretary . 5684. Register of directors and secretaries . 5685. Particulars of directors . 5786. Particulars of secretaries . 57PART XV – MEETINGS. 5887. Participation in meetings . 5888. Annual general meeting . 5889. Minister’s power to call meeting in default . 5990. Requisition of meetings . 5991. Definition of special resolution . 6092. Notice of meetings . 6193. General provisions as to meetings and votes . 6294. Representation of body corporate at meetings . 6395. Power of court to order meetings . 63

6Cap 21.03Companies ActLaws of Saint Christopherand NevisRevision Date: 31 Dec 200296. Resolutions in writing . 6397. Proxies. 6498. Demand for poll . 6599. Minutes . 65100. Inspection of minute books . 66101. Filing of resolutions . 66102. Resolution passed at adjourned meeting . 67PART XVI – ACCOUNTS AND AUDITS . 67103. Accounting records . 67104. Register of mortgages and charges. 68105. Accounts . 68106. Copies of accounts . 69107. Delivery of accounts to the Registrar . 69108. Failure to comply with section 103, 105 or 107 . 70109. Power to make Order as to accounts . 70110. Appointment and removal of auditors . 71111. Auditors’ report . 72112. Auditors’ duties and powers. 72113. False statements to auditors . 73114. Qualification for appointment as auditor. 73PART XVII – DISTRIBUTIONS . 74115. Restrictions on distributions . 74116. Consequences of unlawful distribution . 76PART XVIII – AMALGAMATION AND ARRANGEMENTS . 76117. Takeover offers . 76118. Right of offeror to buy out minority shareholders. 77119. Effect of notice under section 118. 78120. Right of minority shareholder to be bought out by offeror . 79121. Effect of requirement under section 120 . 80122. Applications to the Court . 81123. Joint offers. 81124. Associates . 82125. Convertible securities . 83126. Power of company to compromise with creditors and members. 83127. Information as to compromise to be circulated . 84128. Provisions for facilitating company reconstruction or amalgamation . 85PART XIX – INVESTIGATIONS . 86129. Appointment of inspectors by Minister . 86130. Powers of inspectors . 86

Laws of Saint Christopherand NevisCompanies ActCap 21.037Revision Date: 31 Dec 2002131. Production of records and evidence to inspectors . 87132. Power of inspectors to call for directors’ bank accounts . 87133. Authority for search . 87134. Obstruction . 88135. Failure to co-operate with inspectors . 88136. Inspectors’ reports . 88137. Power to bring civil proceedings on behalf of body corporate . 89138. Expenses of investigating a company’s affairs . 89139. Inspectors’ report to be evidence . 90140. Privileged information . 90141. Investigation of external companies . 90PART XX – UNFAIR PREJUDICE . 91142. Power for member to apply to Court . 91143. Power for Minister to apply to Court . 91144. Powers of Court . 91PART XXI – SUMMARY WINDING UP . 92145. Application of this Part . 92146. Procedure for summary winding up at end of period of existence. 92147. Procedure for any other summary winding up . 92148. Commencement of winding up . 93149. Effect on status of company. 93150. Appointment of liquidator . 93151. Application of assets and dissolution . 93152. Effect of insolvency . 94153. Liability of past directors and others . 95154. Remuneration of liquidator . 95155. Cesser of office by liquidator. 96PART XXII – WINDING UP BY THE COURT . 96156. Power for Court to wind up . 96PART XXIII – CREDITORS’ WINDING UP . 96157. Application of this Part . 96158. Procedure for creditors’ winding up at end of period of existence . 96159. Procedure for any other creditors’ winding up . 97160. Commencement and effects of creditors’ winding up . 97161. Meeting of creditors in creditors’ winding up . 97162. Appointment of liquidator . 98163. Appointment of liquidation committee . 99164. Remuneration of liquidator, cesser of directors’ powers, and vacancy inoffice of liquidator . 99

8Cap 21.03Companies ActLaws of Saint Christopherand NevisRevision Date: 31 Dec 2002165. No liquidator appointed. 100166. Costs of creditors’ winding up . 100167. Payment of interest on debts . 100168. Arrangement when binding on creditors . 100169. Meeting of company and creditors . 100170. Final meeting and dissolution . 101171. Powers and duties of liquidator . 102172. Power to disclaim onerous property . 102173. Powers of Court in respect of disclaimed property . 103174. Unenforceability of liens on records . 103175. Reference of questions and powers to the Court . 103176. Appointment or removal of liquidator by the Court . 104177. Transactions at an undervalue and preferences . 104178. Responsibility of persons for wrongful trading . 105179. Responsibility for fraudulent trading . 106180. Extortionate credit transactions . 106181. Deliver and seizure of property . 107182. Liability in respect of purchase or redemption of shares. 107183. Resolutions passed at adjourned meetings . 108184. Duty to co-operate with liquidator . 108185. Liquidator to report possible criminal offences. 109186. Obligations arising under section 185 . 109PART XXIV – GENERAL PROVISIONS IN WINDING UP . 110187. Distribution of company’s property . 110188. Enforcement of liquidator’s duty to make returns, etc. . 110189. Qualifications of liquidator . 110190. Corrupt inducement affecting appointment of liquidator . 110191. Notification by liquidator of resignation, etc. . 111192. Notification that company is in liquidation . 111193. Liability as contributories of present and past members . 111194. Bar against other proceedings . 112195. Disposal of records. 112PART XXV – EXTERNAL COMPANIES . 112196. Power to make Order as to external companies . 112PART XXVI – REGISTRAR . 116197. Registrar and other officers . 116198. Registrar’s seal . 116199. Registration numbers . 116200. Size, durability, etc. of documents delivered to the Registrar . 116