Bearer shares are deemed to be the property of anyone presenting them, thus allowing companies to hide the identities of their directors and shareholders. In particular, bearer shares are issued by international business companies domiciled in tax havens such as the BVI. IBCs can be set up for a few hundred dollars in centres across the region, with 102,000 in the Bahamas and more than 350,000 in the BVI. There are no rules requiring them to disclose lists of directors, owners and shareholders.
The BVI’s Financial Services Commission has stopped short of banning bearer shares – unlike the Bahamas – but instead will restrict their mobility by requiring that they be held within an approved custodian. The law requires that the particulars of directors of IBCs be kept in the BVI and that the information will be accessible by officials.
Norma Cohen,
The Financial Times
