The Nevis limited liability company is an effective and efficient offshore asset protection tool. In May, 2015, the Nevis Assembly enacted an important revisions of the Nevis LLC Ordinance. The new law significantly improved asset protection benefits of forming a Nevis LLC. The new law is called the “Nevis Limited Liability Company (Amendment) Ordinance, 2015,”.
The asset protection improvements in the 2015 amendment include, but are not limited to the following provisions.
The amendment makes the charging lien the sole creditor remedy against a debtor’s LLC interests including single-member Nevis LLCs.
The creditor’s charging lien is not perpetual, but expires in three years.
The LLC may offset distributions payable to the debtor member with additional capital calls
Fraudulent transfer actions brought in Nevis are subject to a strict standard of proof of the debtor’s intent to avoid, hinder, or delay creditors.
The creditor with a charging lien may not interfere with LLC operations or assume the debtor’s voting rights, and
The amendment expressly allows other members, or the debtor member, to redeem the interests subject to a charging order. The redemption provision pertains to the LLC’s “internal affairs” and may well be recognized by a U.S. court that asserted jurisdiction over the charging lien applied to a debtor member.
These amendments increase in costs and efficiency advantages of the Nevis LLC when compared to offshore trust laws of other asset protection jurisdictions.
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