24 NEWS
TURKS AND CAICOS WEEKLY NEWS
April 20 - 26, 2013
Captain and engineer charged for damage to reef – Governor and DEMA Director inspect damages first hand BY VANESSA NARINE FOUR charges have been brought
against the captain and the engineer of the MY White Cloud under the National Parks Ordinance and the
Let’s Talk Law With David Cadman
David Cadman is a litigation attorney and partner with Griffiths & Partners. He was called to the Bar of England & Wales in 1996 and as an attorney in the Turks & Caicos Islands in 2005.
Company Law Reform in Turks and Caicos THE company law in force in the Turks and Caicos Islands today was last amended six years ago, with the present Ordinance first enacted in 1981. There seems to be agreement that revision of the law is overdue. If the Islands are to attract new business, investors require a healthy, comprehensive and clear commercial structure which the legal framework provides. Chapter V of the Companies Ordinance provides for the winding up of a company and contains most of the insolvency laws in force in the Islands. Insolvency laws provide remedies for companies which have fallen into insolvency difficulties, such as having insufficient funds to pay their debts. Such laws are critical for the development of an economy because investors and creditors need to be confident that there are sound procedures which govern their options when things go wrong in business. Modern insolvency laws should not only provide for the winding up of companies in certain situations (which is essentially the ‘legal death’ of companies) but also ways to save them. The problem with the present statutory regime in the Turks and Caicos Islands in this respect is that it only provides for winding up of companies. In other words, there is only an ‘all or nothing’ option. Chapter V of the Companies Ordinance preserves the Court’s common law jurisdiction to provide for other insolvency options, such as receivership but the situation is far from satisfactory. The Turks and Caicos laws reflect the position in England & Wales prior to milestone changes there in this area of law in 1986. The administration of companies, insolvency regulations and international insolvency require legal attention to bring the Islands' laws in line and thereby create a benign environment for business. The Insolvency Act 1986 in England is the milestone in insolvency law. It is a very significant law in scale and scope, extending to hundreds of pages with more than 400 statutory provisions. Importantly, it created the concept of the administration of companies in difficulty. Administrators are appointed for a fixed period of time with the aim of restoring an insolvent company to good health. Sometimes a company in financial trouble may only need some ‘breathing space’ to get back to good order, whilst a winding up order would extinguish this possibility altogether, thereby ending the business, including any employment. The appointment of an administrator seeks to provide the means of securing the survival of a business which, if it can be achieved properly, is in the interests of investors, customers and employees. Having insolvency options is important for business ventures interested in investment in the Islands because it offers protection if things do not go according to plan. It is also beneficial to creditors whose interests may otherwise be lost. Administration provides a company with a chance to restore its health and be maintained as a viable business able to meet its liabilities, whereas winding-up only allows for the distribution of remaining assets of a deceased business. Administration has the potential of maximising the funds available for all the creditors. This is a critical issue for increasing the incentives to invest in business in the Islands. Chapter V of the Companies Ordinance does not provide for the appointment of administrators and although the courts arguably have common law jurisdiction to make such appointments, the procedures and powers are uncertain and obscure. Uncertainty is costly in business and deters investment. It would therefore beneficial for the Turks and Caicos Islands to have legislation in place to provide for the appointment of administrators and a statutory framework for the powers and duties of administrators.
Fisheries Protection Ordinance. These include anchoring a vessel greater than 60 feet in length outside an approved anchoring zone in the Northwest Point Marine National Park and for causing anchor damage to coral reef structures. A notice of seizure of the vessel was also served under both Ordinances pending the determination of the charges. The anchor of the 220feet yacht was dragged through the reef, off North West Point, resulting in significant damages on April 1. The costs of the conservation and restoration are expected to be
recovered from the yacht’s insurers. On Thursday, Governor Ric Todd and Department of Environment and Maritime Affairs (DEMA), Kathleen Wood, took a guided dive to inspect the damages first hand. UPSETTING FIND Wood, after the 45 minute dive, was visibly distraught over what she said. She said: “It was what I expected…but nothing can prepare you to see that kind of catastrophic damage” According to her, the restoration efforts will not bring back what was there.
“We can have something different, but not get back what we had,” she said. Wood explained that currently a team is working to quantify the damage, rescue and secure what is left and in time will put in place an artificial structure that will hopefully encourage re-growth. She pointed out that it is difficult to prepare for carelessness. Recounting what he saw on the dive, Todd said: “The damage is quite awful…at the moment it is looking very sad…divers know that one of the most marvellous things about the TCI is its reefs…they are quite striking and wonderful when continued
Tymant Dean on her visit to North and Middle Caicos
Tymant Dean visits North and Middle Caicos THE beautiful green islands of North and Middle Caicos played host to their Miss Turks and Caicos International 2013 representative, Tymant Dean, when she visited on Tuesday. No stranger to the islands, having lived there for short time, she was excited to visit her old school, from which she graduated in 2000 and is still proud, calling it the best school in the country. Dean had the opportunity to meet the older residents in the community, who she acknowledged are the cornerstone of the country’s heritage, with the most amazing stories to tell about the rich history. Miss North Caicos also had the
opportunity to go farming, something that was definitely out of her element but surprisingly fun and informative, according to her. She told the Weekly News that she had a blast; she took lots of photos with the settlements; enjoyed some succulent native dishes; and that it was indeed a pleasure visiting again and on such an occasion where she had the honour and opportunity to see the island as its representative. Dean assured her fans that they have definitely not seen the last of her and she was indeed looking forward to visiting again before and after the pageant. The Miss Turks and Caicos International 2013 hopeful and
her team of eager fans, whom she lovingly referred to as ‘Team Ty’, worked together to make sure that she got out into the community, met its residents and planned a clean-up campaign. Dean noted that she now felt better equipped to promote North and Middle Caicos and their unique contribution to the productivity of the entire country. According to her, the tour gave her a new resolve to not only to win the competition, but also be the most dynamic and determined Miss Turks and Caicos International the pageant has ever crowned and the most inspiring and committed representative North Caicos has ever had.