Caribbean Court of Justice Rules Belize Can Require Registered Agents for Some CARICOM Companies

The Caribbean Court of Justice (CCJ) has ruled that Belize can require certain CARICOM-connected companies to have a registered agent in Belize without automatically breaking regional competition rules.  The decision came out of a case before the Belize High Court involving businessman G. Anwar Barrow, several Belize-registered companies, the Financial Services Commission and the Attorney General.  The companies had challenged rules that apply to businesses linked to other CARICOM countries. These include having to appoint a registered agent in Belize, submit company documents through that agent and pay some required fees in U.S. dollars.  The Belize High Court asked the CCJ to determine whether the registered-agent requirement placed those companies at an unfair disadvantage when compared with other businesses.  The CCJ first confirmed that it has the authority to interpret the Revised Treaty of Chaguaramas when a national court asks it to do so. But on the main question, the Court found that the treaty provision raised in the case deals with unfair or anti-competitive actions by businesses, not rules imposed by a government.

Hon. Mr. Justice Winston Anderson, CCJ: “The court held that Article 177 per se is concerned with the conduct of enterprises, not regulatory measures of the state. Applying this interpretation, the court concluded that the requirements imposed in the instant matter are regulatory measures enacted by the state and do not arise from the business conduct of an enterprise. While acknowledging that state measures capable of distorting competition might be scrutinized under other provisions of the RTC, the court emphasized that the referred question does not request interpretative assistance in relation to those other provisions. In its ruling, the court answered the question as follows. “Article 177 of the RTC does not prohibit a regulatory requirement that a) local companies with shareholders or directors from CARICOM jurisdictions and b) 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.” That then is the ruling on the question referred as indicated earlier that ruling was communicated earlier today to the High Court of Belize.”

The CCJ says government policies that may affect competition could possibly be challenged under other parts of the treaty. However, those issues were not part of the question sent to the Court by the Belize High Court.  The ruling has now been sent back to the Belize High Court, where the constitutional case will continue.