As of the first day of 2012, U.S. Virgin Islands domestic corporations can have fewer than three directors, making it easier for smaller companies to establish themselves, the Office of the Lieutenant Governor announced Monday. V.I. law's previous requirement of a minimum of three directors has historically placed a burden on some smaller companies, especially where there is a single owner who must coordinate management decisions with directors who have no financial stake in the enterprise.
"The new law will greatly assist small businesses in the Territory, which previously were restricted to employing limited liability companies as the only corporate entity available for a sole owner," said Dan Gravel, Chair of the Corporate, Tax & Estate Planning Practice Group at BoltNagi PC.
Bill No. 29-0039 proposed by Sen. Patrick Sprauve in March of 2011 was signed into law as Act No. 7265 in July of last year, and took effect January 1, 2012. Under the new law, companies generally still must have at least three directors, but there is now an exemption, so that no company will be required to have more directors than shareholders.
Revised annual reports for domestic and foreign corporations, which reflect the new changes, are available at Division of Corporation and Trademarks offices and online at www.ltg.gov.vi.
Additionally, the Division has recently implemented a separate annual report form for non-profit corporations, domestic or foreign, which is also available at the division’s offices and online.
For more information, contact the Division of Corporation and Trademarks at (340)773-6449 on St. Croix, or 776-8515 for the St. Thomas/St. John District.