QUESTIONS AND ANSWERS  

Q1. Is it possible to appoint a receiver over assets which have been charged by a British Virgin Islands (‘BVI’) company (a ‘Company’) under a security document?

A1. Yes, provided that the security interest which has been granted by the Company to the beneficiary (the ‘mortgagee’) over the Company’s assets allows the mortgagee to appoint a receiver. Appointing a receiver is probably the most common way of enforcing security interests granted by Companies.  

In Katavich v Meltzer & Ors, the court confirmed that pursuant to ss 284 and 321 of the Companies Act 1993 (Act), liquidators can be removed notwithstanding that their final report has been filed and the company is to be struck off the Register.

The above is a new Act to make provision about the rights of third parties against insurers of liabilities to third parties in the case where the insured is insolvent, and in certain other cases.

Amendments to the Third Party (Rights against Insurers) Act 1930 are long overdue, so the reforming Bill currently being fast-tracked through Parliament, the Third Party (Rights against Insurers) Bill, should be welcomed by the insurance industry. In the words of the Ministry of Justice, it is intended to make it “… easier and less expensive to claim compensation from insolvent defendants”.

Current law