Senators Passed Controversial Belize Companies Act, 2022 Back in June

Eamon Courtenay

Tonight, there is controversy surrounding the Belize Companies Act, 2022. The Senate voted in favor of the passage of that piece of legislation on June twenty-ninth, to replace both the International Business Companies Act and the century-old Companies Act. During that debate, Kevin Herrera, senator for the business community, gave his full support for the bill, noting that the act underwent extensive consultations.  Sheena Pitts, an Opposition Senator at the time, supported several aspects of the proposed act.  Senator Elena Smith also rose to speak on the bill. Her concerns were in relation to certain positions within the Belize Companies Registry becoming redundant. The bill successfully made it through the Senate. Here is how Eamon Courtenay, the Senator for Government Business, explained the benefits of the merger, at the time. 

File: June 29th, 2022

Eamon Courtenay, Senator for Government Business

“This has been an extremely long process. It has been subject to a lot of consultation. The current Companies Act is dated 1914. It is completely out of date, it is over a hundred years old and it does not take into account ht appoints highlighted by Senator Herrera. First of all, modernization in terms of technology and this bill is intended to take advantage of the modernization features that we have become accustomed to. Secondly, in terms of raising capital, by the bringing of the international business companies and the domestic companies into one type, you can raise capital locally as well as internally to raise investments into Belize. Thirdly, the whole question of mergers, the mergers, the liquidations, wind-up of companies has been modernized. Fourthly, which is very important, which Senator Pitt will know this from her practice, the rights of minority shareholders under the old law as it is are very limited. This new legislation will give statutory rights for minority shareholders, to ensure they are treated fairly by majority shareholders, and, if they are not being treated fairly by majority shareholders.”