New Developments

Business Law Reform

The VFSC is modernizing, with Asian Development Bank (ADB) support, the companies laws and the companies registry, and the bankruptcy and insolvency law. The Bills are expected to be tabled in Parliament in 2011.

Also, the VFSC is undergoing institutional reform in terms of enhancing corporate governance standards, supervisory capabilities, and organisational structure with a view to establishing Vanuatu as a modern, commercially attractive international financial center.

Company and Trust Service Providers

FIRST INITIATIVE was approached by the Vanuatu Financial Services commission (VFSC) for technical assistance to develop the legislative framework for the regulation and supervision of Trust and Company Service Providers (CTSP). The work will continue build on the IMF funded TA to review the draft CTSP Bill modelled on the Isle of man law. The Bill has been passed by Parliament is awaiting gazettal by the State Law Office.

Trustee Act

The Commission is proposing to introduce a new Trustee Act for Vanuatu with the assistance of the Asian Development Bank. This Bill is expected to be tabled in Parliament during 2012.

Amendments to the Business Names Act

A draft Bill has been completed and circulated for review by stakeholders. It is expected thet the Bill will be table in Parliament during 2012.

Key Indicators

History

Archaeological evidence supports that people first came to the islands some 4,000 years ago. However, pottery fragments have been found dating back to 1300 B.C. The first island in the Vanuatu group discovered by Europeans was Espiritu Santo. In 1774, Captain Cook named the islands the New Hebrides, which France and the United Kingdom jointly administered until the country became independence in 1980.

Politics

Vanuatu has a republican political system which is currently headed by a President who is elected for 5-year terms by a two-thirds majority in an electoral college. This Electoral College consists of members of Parliament and the presidents of Regional Councils. The prime minister and the Council of Ministers constitute the executive government.

Economy

The economy is based primarily on household farming agriculture, which provides a living for 65% of the population. Fishing, forestry, offshore financial services, and tourism are other mainstays of the economy. Government revenues come mainly from import duties and a 12.5 percent Value Added Tax (VAT) on goods and services. The country depends on relatively few commodity exports such as copra, beef and forestry products.

Religion

Christianity is the predominant religion in Vanuatu, consisting of several denominations. The Presbyterians are the largest (33% of the population) followed by Roman Catholics (15%), and Anglican (15%). There are many other religious sects and denominations.

Political Structure

Vanuatu Public Holiday (2011)