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Company & Commercial

The International Limited Liability Company (LLC) Act provides a general framework for the establishment and operation of an international LLC. The act introduces numerous asset protection features that make Belize's LLC one of the strongest asset protection tools available.

Employment & Labour

The first claim made under the Trade Unions and Employers' Organisations (Registration, Recognition and Status) Act was filed by six former employees of banana farm Mayan King Limited. The employees alleged that they had been dismissed due to their role in spearheading a movement to unionise workers. The compensation awarded to the claimants was largely affected by the particular facts of the case.

The Court of Appeal recently handed down a decision in an employment dispute which appears to be contrary to long-established principles of the Trade Unions and Employers' Organisations (Registration, Recognition and Status) Act, which provide that a person cannot be awarded damages for injury to feelings. The employer, Mayan King, has been given leave to appeal the decision to the Caribbean Court of Justice.

The Labour (Amendment) Act will make significant changes to the law relating to employer/employee relationships in Belize. While some of the changes are not as extensive as originally drafted and therefore are unsatisfactory to the unions, they have still caused concern among employers which are already facing challenges in keeping their businesses afloat. This update summarises the main changes introduced by the amended act.

Energy & Natural Resources

The Belize government has nationalised Belize Electricity Limited (BEL), the major supplier of electricity to the Belizean public. When presenting the bill concerning BEL's nationalisation in the National Assembly, the prime minister said that the reason for nationalising BEL was to prevent Belize from being plunged into rolling blackouts.

The government has entered into several production sharing agreements with different contractors pursuant to the Petroleum Act. Each contractor is authorised to conduct petroleum explorations as defined by the act, within a designated area defined by the relevant agreement. However, the owner of the land which is the subject of an agreement retains certain rights in relation to the conduct of petroleum operations on and under such land.

In a curious recent case, the Court of Appeal decided that the Supreme Court had no jurisdiction to oversee a case brought by Belize Electricity Limited (BEL) against the Public Utilities Commission. In the case, BEL brought three questions before the Supreme Court by a so-called 'case stated'. This is a relatively unusual procedure by which a person or body having power to hold a hearing or make a decision may be empowered to state a case to the court for its opinion.

Intellectual Property

Tobacco giants Philip Morris SA and British American Tobacco (Brands) Limited (BAT) have been locked in combat over the registration of BAT's EMBASSY trademark in Belize. BAT has thus far persuaded the deputy registrar, the Supreme Court and the Court of Appeal that it should be permitted to proceed with registration of its mark.

Litigation

The Belize Supreme Court has jurisdiction to grant a free-standing freezing order in respect of the assets of an international business company – more colloquially known as an offshore company – in order to freeze the company's assets in aid of ongoing foreign proceedings. However, the court exercises this jurisdiction with great caution, and often reluctantly.

The primary objective of the Indictable Procedure (Amendment) Act is to provide for a trial without a jury in certain criminal cases (eg, in the case of murder and attempted murder). No appeal can lie against an order of the judge granting or refusing an application for a trial to be conducted without a jury.

Offshore Services

Receivers are usually appointed pursuant to the provisions of a mortgage debenture or a registered mortgage or charge. Although a receiver is expressed to be the company's agent, it does not take directions from the company, but rather gives directions to it. Where a receiver fails to carry out its duties with due diligence, it may become personally liable to the debenture holder or the company.

The International Limited Liability Company (LLC) Act provides a general framework for the establishment and operation of an international LLC. The act introduces numerous asset protection features that make Belize's LLC one of the strongest asset protection tools available.

The Belize Supreme Court has jurisdiction to grant a free-standing freezing order in respect of the assets of an international business company – more colloquially known as an offshore company – in order to freeze the company's assets in aid of ongoing foreign proceedings. However, the court exercises this jurisdiction with great caution, and often reluctantly.

Tobacco giants Philip Morris SA and British American Tobacco (Brands) Limited (BAT) have been locked in combat over the registration of BAT's EMBASSY trademark in Belize. BAT has thus far persuaded the deputy registrar, the Supreme Court and the Court of Appeal that it should be permitted to proceed with registration of its mark.

Norwich Pharmacal applications have become commonplace in Belize due to the country's thriving international financial services sector. One of the most recent successes is illustrated in Quinn Finance v Galfis Overseas Limited, which demonstrates that Norwich Pharmacal orders can be a powerful tool in multi-jurisdictional litigation.

The first claim made under the Trade Unions and Employers' Organisations (Registration, Recognition and Status) Act was filed by six former employees of banana farm Mayan King Limited. The employees alleged that they had been dismissed due to their role in spearheading a movement to unionise the workers and. The compensation awarded to the claimants was largely affected by the particular facts of the case.

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Telecommunications

Following the nationalisation of government-owned Belize Telemedia Limited in August 2009, Telemedia engaged in behaviour towards its competitor Speednet Communications Limited which Speednet alleged was intended to jeopardise its ability to provide mobile telecommunications services to the Belizean public. However, the Supreme Court ruled that Telemedia was not dominant in the mobile market and refused the declaration sought.