On 21 March 2025, the Dutch Supreme Court ruled that a taxpayer is allowed to deduct a liquidation loss on its participation in a liquidated subsidiary that transferred losses to group companies under the Irish group relief regime in the years prior to the liquidation. This Supreme Court judgment provides a favorable outcome for taxpayers.

Background

Set-off is simply put a reduction or discharge of a debt by setting against it a claim in favour of the debtor (or the person otherwise having to pay).

The applicability of the principle of set-off under the Insolvency and Bankruptcy Code, 2016 (IB Code) is no longer res integra and the draconian view of the inapplicability of set-off under insolvency proceedings has not found Thankfully, judicial favour.

介绍

英属维尔京群岛（“BVI”）的清算可以是：

1)   破产清算，因此受《2003年破产法》（经修订）（「破产法」）管辖；或者

2)   有偿付能力的清算，因此受英属维尔京群岛商业公司法（经修订）（「公司法」）管辖。

《公司法》经《2022 年英属维尔京群岛商业公司（修订）法》及《2022 年英属维尔京群岛商业公司（修订）条例》修订。

本简报列出了与英属维尔京群岛破产清算相关的一些要点。另一份简报涵盖了与英属维尔京群岛自愿（有偿付能力）清算相关的问题。

无力偿债清算的目的

Parkside’s Derek J Y Chan, instructed by Tanner De Witt, acted for the successful Plaintiffs, China City Construction (International) Co., Limited (In Creditors’ Voluntary Liquidation) and Dingway Investment Limited (In Compulsory Liquidation), both acting through their liquidators, in obtaining an anti-suit injunction (“ASI”) to restrain China City Construction & Development Co., (HK) Limited from continuing proceedings (“the Beijing proceedings”) it had commenced in the People

Introduction

When a company goes into liquidation, creditors often wonder whether they will recover their debts. One available option to achieve this is funding legal action to help the liquidator recover assets.

Singapore's insolvency legislation allows creditors who fund liquidators' recovery actions to have priority over other creditors in the distribution of recovered assets. This improves the viability of commencing insolvency proceedings as an asset recovery tool.

In Servis-Terminal LLC v Drelle [2025] EWCA Civ 62, the English Court of Appeal held that a bankruptcy petition cannot be presented based on an unsatisfied foreign judgment where the foreign judgment has not been recognised in that jurisdiction. This update considers the effect that decision may have on statutory demands and applications for the appointment of liquidators based on unrecognised foreign judgments in the British Virgin Islands.

The Hierarchy of the Courts of the Eastern Caribbean

Following the High Court’s landmark case in 2023 where cryptocurrency was recognised by the Court as property and could form a subject matter of a trust, the High Court recently further clarified the trust relationship between exchanges and their customers. Non-Consenting Customers (NCCs) who did not accept the 2018 Terms and Conditions (T&C) were found to have a proprietary interest in their assets, giving them priority in the liquidation process. Conversely, customers who had agreed to the T&Cs were treated as unsecured creditors.

Contract Natural Gas Limited v ZOG Energy Ltd [1] is the first post-Enterprise Act 2002 judgment on the effect of administration on limitation. After reviewing existing authority and statute, the Court confirmed that (among other things) time does not stop running for limitation purposes when a company enters a post-Enterprise Act administration. Fraser Ritson, Aziz Abdul and Brian Rostron acted for Joshua Dwyer and William Wright in their capacity as the joint liquidators of Contract Natural Gas Limited – in Liquidation.

Key developments in 2024

2024 has seen one of the most significant insolvency cases in recent years. In June, Justice Leech handed down his judgment on the claim brought by the liquidators of BHS against certain of its former directors for wrongful trading and misfeasance. This judgment is likely to have important consequences for the D&O market.

It was particularly noteworthy as it was the first time that the directors of a company had been found guilty of the novel claim of 'misfeasant trading'.