Latest update March 28th, 2025 6:05 AM
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- “It will be a very bad day for Venezuelan if they attack Guyana or ExxonMobil”—Rubio declares
- Guyana gets info on U.S. tax evasion allegations against Mohameds, Mae Thomas
- US$35 injected into banking system to address foreign currency shortage—VP Jagdeo
- Citizens to stage protest today against lack of access to information in Guyana
- Guyana vows to stand with U.S.
Oil companies not incorporated in Guyana…Nothing here that is not fit and proper
– Hughes
Attorney at Law, Nigel Hughes says that there is nothing “that is not fit and proper,” about his office being the registered address for all three of the oil companies that are operating in the Stabroek Block.
He was responding to Sunday’s Kaieteur News article with the headline “Major oil Companies operating in Guyana did not even bother to incorporate domestic branch.”
That article highlighted the fact that while three major international companies are getting ready to reap tremendous benefits from Guyana, they have not even bothered to incorporate a local company.
The article quoted Accountant and Attorney at law, Christopher Ram saying, “It is worth noting that none of these three entities have incorporated a domestic company and each has a registered office at the address 62 Hadfield and Cross Streets, the same address as Hughes, Fields and Stoby”. Ram noted that while this is so, these companies, and their affiliates, stand to absorb vast benefits from the concessions granted under the contract signed with the APNU+AFC government.
However, though quite straight forward in its true context, the article has been interpreted in some quarters to be an attack on Hughes, Fields and Stoby.
Yesterday, Hughes wrote on his Facebook page that the newspaper seems confused.
“The contents of the article appear to disclose some confusion or perhaps miscomprehension about the difference between the registration of a branch of an external company and the incorporation of a subsidiary referred to in your article as ‘domestic company,” said Hughes.
He then went into explaining that a branch office is not a separate legal entity from the parent company or corporation. It is the presence of the parent within the jurisdiction, the process of registration ensures the legal presence of the parent in Guyana. “It is the most direct and proximate legal presence of the external company in Guyana,” said Hughes.
“Incorporation of a company, on the other hand, is effected by the incorporation of a separate and distinct legal entity known as a limited liability company in Guyana. This applies where a subsidiary is incorporated. Subsidiaries are not necessarily wholly owned by their parent and the laws make no such requirement. The concept of ‘incorporation of a domestic branch’ referred to in your article appears to have confused the direct presence of the parent by registration of the parent as an external company with that of the incorporation of a subsidiary of the parent.”
Attorney at Law, Christopher Ram
Attorney at Law, Nigel Hughes
Hughes noted that the law does not contemplate or consider the incorporation of a branch domestic or otherwise.
“There is nothing amphibian about this. It’s either a mammal or a reptile. It cannot be both.”
Hughes also pointed out, “Your article asserts ‘It is worth noting that none of these three entities have incorporated a domestic company and each has a registered office at the address 62 Hadfield and Cross Streets, the same address as Hughes, Fields and Stoby’. This statement you attribute to a qualified lawyer and accountant as an expert in this field. Perhaps it has escaped the attention of your expert that all branches of external companies are required by law to have registered agents and offices in country. Most external companies nominate their Attorneys as the registered agents for a myriad of reasons, including but not limited to, the ease of effecting service of court process on the principal.”
The lawyer then stated, “Nothing here that is not fit and proper. I am not unaware the offices of your expert serve this purpose for several overseas companies.”
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