Turks and Caicos: Types of Company
The Hybrid company turns accepted concepts of company law on their head. It has 2 classes of members:
- The shareholders who have voting control but no right to dividends or to share in any distribution of capital upon winding up;
- The guarantor members who have no voting control but who have a right to dividends and to any distribution of capital on winding up.
The Hybrid has been described as a quasi trust with the shareholders (the controlling members) effectively constituting the trustees and the guarantor members (the participating members) effectively constituting the beneficiaries. It may be particularly useful for persons from civil law jurisdictions where the concept of a trust is not legally recognised but the concept of a company is and who can therefore use a company to avail themselves of all the benefits of a trust. Furthermore, difficult questions affecting a trust such as the governing law can be avoided since most jurisdictions accept that the law governing an incorporated body is the place of its incorporation.