The Caribbean Court of Justice has ruled that Belize's company filing requirements for CARICOM-linked businesses do not violate the Revised Treaty of Chaguaramas.
The decision came after the High Court of Belize referred a legal question involving Anwar Barrow and a raft of companies against the Financial Services Commission. The court sought clarification on whether the requirement for CARICOM companies to maintain and file documents through local registered agents breached Article 177 of the treaty.
The CCJ found that Article 177 targets anti-competitive conduct by companies rather than regulatory measures imposed by governments, confirming that Belize's requirements are lawful. Here's that part of the decision:
Hon. Justice Winston Anderson, CCJ President
"The Court clarified that while in its original jurisdiction it could not provide authoritative guidance on whether Belizean domestic legislation was breached, it was competent to interpret Article 177 of the RTC. The Court therefore considered whether the requirement for CARICOM Inc. and linked companies to maintain and file documents through local registered agents amounted to the application of unequal conditions to parties undertaking equivalent engagements in commercial transactions, thereby causing a competitive disadvantage as prohibited by Article 177 of the RTC. The Court undertook a contextual interpretation of Article 177 within Chapter 8 of the RTC and that establishes the community competition policy, the goal of which is to prevent anti-competitive business conduct that would frustrate the benefits of the CARICOM single market and economy."
"The Court held that Article 177 per se is concerned with the conduct of enterprises, not regulatory measures of the State."
"Article 177 of the RTC does not prohibit a regulatory requirement that local companies with shareholders or directors from CARICOM jurisdictions and the companies incorporated within CARICOM countries maintain and file documents through local registered agents. Article 177 is concerned per se with the anti-competitive business conduct of enterprises and not with the regulatory measures of a member State."
The Court also reaffirmed that it has exclusive jurisdiction to interpret the Revised Treaty of Chaguaramas and will provide guidance when national courts seek clarification on its provisions.
