Cancelling a foreign investment

A foreign investment registration can be cancelled if the investor:

  • conducts a prohibited or reserved activity
  • hasn’t commenced business within 12 months of receiving the certificate of registration
  • obtains the certificate by fraud, misrepresentation, misstatement or omission of a material particular
  • has committed an offence against this Act or any other law of Solomon Islands relating to an investment activity specified on the certificate of registration with a penalty over 12 or more months imprisonment
  • has been deported from Solomon Islands.

(Section 23 of the Foreign Investment Act 2006)

However, the certificate will not be cancelled by the Registrar unless:

  • the Registrar is satisfied there are grounds for cancelling in line with the reasons above
  • the foreign investor has had at least 10 days to show cause as to why the certificate should not be cancelled
  • the foreign investor’s response has not satisfied the Registrar; and
  • the Registrar has consulted the Minister.

Reasons for cancellation must be specified to the foreign investor, and they must be informed of their right to a review under s27 of the Foreign Investment Act 2009.  This right to review allows for a Committee to consider and either affirm or overturn the decision.  A right of appeal on any error of law may then be launched in the High Court.

(Section 27 of the Foreign Investment Act 2009)