New LLC Legislation has been passed by the Parliament of Antigua and Barbuda in the Caribbean, and will become effective on publication in the official gazette.  The Financial Services Regulatory Commission (FSRC) has already started accepting applications to form LLCs.  Why does this affect you?  The Antigua and Barbuda International LLC Act of 2007 was drafted specifically for clients in jurisdictions outside Antigua – so called offshore users. 

The Antigua LLC Act has a number of exciting features which include:

• Confidentiality provisions which mandate that all members/managers of the LLC keep all confidential information confidential;

•  Restrictions on disclosure of information by local service providers - Information about the LLC and its members/managers will only be revealed in limited circumstances and only under an order issued by an Antiguan Court;

• Fraudulent conveyance provisions written into the legislation which:
• has a one year limitation period,
• must be proven beyond reasonable doubt,
• is only available to judgment creditors;

• A default regime with restrictive provisions which may possibly enhance  valuation discounts for estate planning purposes; 

• Provisions for a succession committee which allows management to be transitioned smoothly between successive managers; 

• Provisions that mandate that the Courts in Antigua and Barbuda have exclusive jurisdiction to adjudicate matters between members and managers, and to issue charging order protection; 

• Provisions that deal with events of duress; 

• Provisions for a series LLC…   and more…

In the next few months we at Wealth Management Services, Ltd., will go through and provide you with summary of the very important provisions of the International LLC Act of Antigua.  Newsletters will be issued once every two weeks.  The first newsletter is scheduled to be issued on May 16, 2008. If you would like to sign up for this important newsletter please click here.  The LLC Act is also available on this website so alternatively, you may go through the Act yourself.

We look forward to having a great relationship with you.

Sincerely,

Your Wealth Management Team