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IoM Modernizes Company Law

Monday, October 25, 2010

The Isle of Man parliament last week approved two separate sets of regulations modernizing the islandís company law.

Firstly, the company law was amended to change the obligation on private companies to hold annual general meetings; and to change the types of business that can be conducted by Protected Cell Companies (PCCs).

The first regulations adopted, the Companies Act 1931 (Dispensation for Private Companies) (Annual General Meeting) Regulations 2010, allow the members of private companies to make an election to dispense with the requirement to hold annual general meetings, which may not always be necessary in the case of small companies for example. This provision does not apply to charities however.

The Protected Cell Companies (Eligibility) Regulations 2010 allow PCCs incorporated under the Companies Act 1931 to 1993 to conduct any class of business, the same as PCCs incorporated under the Companies Act 2006. The former category of PCC was previously restricted to insurance and collective investment business.

The changes, which were both the subject of consultations earlier this year, were tabled by Treasury Minister Anne Craine, who commented on their adoption:

ďThese are small but significant steps forward which are further examples of the government and private sector working together to enhance the islandís attractions as a business-friendly jurisdiction.Ē

Both regulations are due to come into force on November 1, 2010.