Law of the British Virgin Islands

The first law ever to be passed by a local legislature in the British Virgin Islands concerned punishments for runaway slaves.

[3] However, abolition of slavery and a collapse in sugar prices in the 19th century lead to the virtual economic ruin of the islands, and although the legislature limped along for some time, it was eventually formally dissolved in 1901.

Historically it is regarded a holding measure; a part of the process that eventually led to the more fundamental constitutional government in 1967.

Principles of English common law and equity are extended to the British Virgin Islands by statute.

The Common Law (Declaration of Application) Act (Cap 13) provides: That the Common Law of England, as far as it stands unaltered by any writ[t]en Laws of these Islands, or some of them, confirmed by Your Majesty ... is in force in each of these your Majesty's Leeward Charibee [Caribbean] Islands...The Eastern Caribbean Supreme Court (Virgin Islands) Act (Cap 80) provides: In all matters in which there was formerly or is any conflict or variance between the rules of equity and the rules of common law with reference to the same matter the rules of equity shall prevail.Local statutes are passed by the House of Assembly in the British Virgin Islands.

On several occasions since 1991 there has been discussion of producing a new revised set of the laws of the Virgin Islands, and in 2014 legislation was passed to facilitate the process.

Usually they deal with routine matters which it would be impractical to burden the local legislature with, such as implementing United Nations Security Council resolutions into law.

Various other highly technical aspects of legislation are dealt with by way of Order in Council; for example, all of the jurisdiction's laws relating to civil aviation are promulgated in this manner.

However, orders-in-council are also sometimes used by the United Kingdom government to push through measures which are unpopular locally, and would be difficult to pass using the normal democratic process.

A number of specific statutory monopolies are protected and preserved by legislation in the territory,[9] and in other areas, new entrants to the markets are carefully scrutinised, and may be barred from entering where they might provide competition for local businesses.

Up until 1984 all incorporations in the British Virgin Islands were made under the Companies Act (Cap 285), which was originally passed in 1885.

The BVI Business Companies Act is based largely on New Zealand company law, but has been modified to include many of the characteristic features of offshore financial centres (such as removing restrictions on financial assistance and thin capitalisation, and permitting distribution in specie).

[11] The legislation includes the ISDA model netting laws to facilitate set-off upon a credit event in derivatives transactions.

A substantial body of British Virgin Islands law is dedicated to the regulation of what are collectively referred to as financial services.

The British Virgin Islands is currently organised under its fourth constitution, promulgated in 2007,[16] which represents a sizeable turnover given that the first was only obtained in 1950.

The British Virgin Islands constitution focuses heavily on a distinct cultural identity, contains commitments to uphold human rights and the rule of law, and professes a national belief in God.

The death penalty was abolished for murder in 1991 (controversially), and was subsequently also removed for the last remaining offences (piracy and treason) in 2001.

Tacit recognition that this legislation needs updating is found in the BVI Business Companies Act, 2004, which (to assist structured finance transactions) provides that in relation to a security interest over shares in a British Virgin Islands company, the parties may completely exclude the effect of the Conveyancing and Law of Property Act.

In relation to real estate, the British Virgin Islands adopted a Torrens registration system in the early 1970s, which considerably simplified domestic conveyancing.

Non-residents wishing to purchase property in the British Virgin Islands must obtain a Non-Belongers Land Holding License.

The leading Privy Council decision on "imperfect gifts" in T Choithram International SA v Pagarani [2001] 2 All ER 492 was an appeal from the British Virgin Islands courts.

Repression of freedom of speech, interference with democracy or the rule of law, and arbitrary arrest and torture are virtually unknown.

The territory has been described as “generally free of human rights abuses” and its government has been characterised as taking “a strong and proactive approach to the protection of human rights.”[26] However, the laws in the British Virgin Islands do openly discriminate against people who do not hold what is called “belonger status.” This form of discrimination is expressly preserved in the BVI constitution, which excludes non-belongers from the full scope of its non-discrimination protections.

Under the British Virgin Islands constitution, executive power is vested in the Monarch, and exercised through the Governor.

Low level disputes and petty crimes in the British Virgin Islands are resolved in the magistrates' court.

Justice Edward Bannister QC was sworn in, and after initially sitting in temporary accommodation, the new Commercial Court building was officially opened on 4 November 2009.

Unusually, the British Virgin Islands is one of the relatively few jurisdictions in the region which is opposed to the Caribbean Court of Justice.

The British Virgin Islands Bar Association has always expressed a strong disinclination to abandon a right of final appeal to the Privy Council.