Introduction The BVI Business Companies Act (as amended) (the Companies Act) provides two ways to dissolve a solvent company incorporated in the BVI (the Company), namely: 1) to complete a voluntary liquidation process, with dissolution occurring immediately thereafter; or 2) to allow the Company to be administratively struck off the Register of Companies (the Register) by the BVI Registrar of Corporate Affairs (the Registrar) and simultaneously dissolved on the date the Registrar publishes a notice of the striking off in the Government of the Virgin Islands Official Gazette (the Gazette).
This article first appeared in Accountancy Daily on 20 January 2023.
With supply chain problems, war in Europe and other issues leading to higher inflation and an increasingly uncertain economic outlook, this article explores the options available to companies experiencing financial distress.
Nicola Sharp of Rahman Ravelli considers a case that shows the courts’ reluctance to expand the jurisdiction of equity to award compound interest in common law claims.
In a landmark decision delivered on the 11th January 2023, in the names ‘Av. Jonathan Abela Fiorentino noe vs Eolia Limited’ (case no. 68/2022 ISB), the Civil Court (Commercial Section) rejected the application filed by defendant company demanding the Court to order a retrial of the liquidation proceedings that led to the company being placed into liquidation.
This decision constitutes the first occasion on which the Court pronounced itself on this specific legal matter, since the issue was previously untested.
The Insolvency and Bankruptcy Code, 2016 (Code) was introduced as a one stop solution for resolving insolvencies, which previously was a long-drawn process that did not offer an economically viable arrangement. In 2022, the Indian courts have been guided by the principal of ‘resolution of insolvency of debtor’ over ‘recovery by creditors’ and have refused insolvency applications where they found such application were for recovery of money rather for insolvency of the debtor.
In the current economic environment, directors will be fully focussed on avoiding any breach of their fiduciary duties, particularly if they are directors of companies experiencing or at risk of financial distress.
This client briefing provides a general overview of the duties of directors of Guernsey companies in these circumstances and is not comprehensive. We recommend that clients obtain specific legal advice in relation to any individual matter which may concern them.
Who are the Directors?
January, 2023 For Private Circulation - Educational & Informational Purpose Only Between the lines... A BRIEFING ON LEGAL MATTERS OF CURRENT INTEREST KEY HIGHLIGHTS ⁎ Delhi High Court: Invoking CIRP would not make the dispute non-arbitrable. ⁎ NCLAT: Section 96(1)(b) of the IBC does not stay any future liability or obligation. ⁎ NCLAT: The IBC does not provide for any look-back period on how far back fraudulent transactions can be investigated. ⁎ The changing contours of employment law in India. January, 2023 http://www.vaishlaw.com/ I.
Creditors and debt collectors may rest assured that they are not violating the Fair Debt Collection Practices Act (FDCPA) when sending debt-collection communications prior to any knowledge of a debtor’s bankruptcy filing. In Carrasquillo v.
mourant.com 2021934/73089611/3 GUIDE Protected Cell Companies Last reviewed: January 2023 Contents Introduction 2 What is a PCC and what is it used for? 2 Advantages and disadvantages of a PCC 2 Formation of a PCC 2 What are cellular assets? 3 What are core assets?
Broadly, the end of life options for a solvent Cayman Islands company are either a voluntary liquidation or a strike-off. The appropriateness of either method will depend on the business history of the company and its current financial position. The company should ideally have no assets or liabilities before the commencement of either option.
Preliminary steps
Before commencing the dissolution process, it may be necessary to take some preliminary steps, such as ensuring that: