INTRODUCTION

The Cook Islands comprises 15 islands in the South Pacific located between New Zealand and French Polynesia . It is in the same time zone as Hawaii and enjoys direct and regular international air services from New Zealand , the Pacific and North America .

In 1965 the New Zealand Parliament passed the Cook Islands Constitution Act and gave the Cook Islands self government founded upon its own written constitution. Today the Cook Islands has a Westminster Parliamentary system with democratic elections every five years. The Head of State is Her Majesty Queen Elizabeth II by her representative in the Cook Islands .

The legal system of the Cook Islands closely reflects that of New Zealand and most other British Common Law jurisdictions. There is a High Court and a Court of Appeal of the Cook Islands which is presided over predominantly by current or former New Zealand High Court judges. The ultimate appellate court is the Privy Council in London .

THE OFFSHORE INDUSTRY

The Cook Islands' offshore jurisdiction was conceived in 1981 when the Cook Islands' Government and the Cook Islands ' financial services industry embarked on a legislative and infrastructural programme to create the pre-eminent offshore centre of the South Pacific. Their mission was to create an offshore jurisdiction internationally recognised for its technical innovation, service and professionalism and not to merely emulate the technical achievements of other jurisdictions.

A common misconception about the Cook Islands is that its offshore jurisdiction is a newcomer to the offshore financial scene. This is definitely not the case as it is now almost 20 years since the Cook Islands passed its centrepiece corporate legislation, the International Companies Act 1981-82. This was one of the earliest examples of what is today commonly known as International Business Company ("IBC") type legislation. The IBC concept of simplicity, ease of administration and a familiar corporate entity, clearly found favour with the international financial community. Since that time, several other jurisdictions have enacted IBC type legislation.

CHARACTERISTICS OF THE COOKS ISLANDS JURISDICTION

The Cook Islands ' offshore jurisdiction is well established and has the characteristics necessary to meet the offshore corporate, trustee and financial requirements of the international business community. The more significant of these characteristics are:

Political stability and independence

The Cook Islands became a self-governing country under a written constitution in 1965. It has a Westminster parliamentary system and a legal system that closely reflects that of most Common Law jurisdictions. General elections are held every five years under a system of universal suffrage. Since independence only two major parties have formed governments. Both of these are fully supportive of the offshore industry.

The Cook Islands is a sovereign state and has 100% sovereign law making authority. It is completely independent from any other jurisdiction although it continues to have a close relationship with New Zealand .

User-friendly language, and good telecommunications and infrastructural services

The business language of the Cook Islands is English. The Cook Islands has modern communication systems that are continually being updated and improved. The Cook Islands is 10 hours behind Greenwich Mean Time and, being in the same time zone as Hawaii , is convenient for clients in both South -East Asia and the Americas .

Tax neutrality

At the very least everyone using the services of an offshore jurisdiction will be looking for tax neutrality. In the Cook Islands the tax rate for all offshore entities is zero.

Professional and international trustee companies

The Cook Islands is able to provide professionals and trustee companies of the highest quality to facilitate the establishment, maintenance and administration of the offshore vehicles provided by the Cook Islands ' legislation.

The trustee companies carrying on business in the Cook Islands are a mix of multinational and established private and public companies which each provide a representative to the Cook Islands Trustee Companies Association ("CITCA"). The CITCA plays an integral part in the maintenance of professional standards and the consultative process in the Cook Islands .

Legal system

The legal system closely reflects that of New Zealand and other British Common Law countries. There is a hierarchy of courts comprising a High Court and Court of Appeal. The ultimate appellate court is the Privy Council in London sitting in right of the Cook Islands . There is a long history of respect for the rule of law.

Technical and innovative legislation

The Cook Islands offshore jurisdiction has been built upon the foundation provided by four pieces of legislation. The International Companies Act, 1981-82, the International Trusts Act, 1984, the Offshore Insurance Act, 1981-82 and the Offshore Banking Act, 1981. Each of these statutes is an example of modern technical innovative legislation designed to meet the requirements of clients and to keep the Cook Islands at the forefront of the offshore industry.