Vol 16 (2019) - Issue 1

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Acts of Perversity: When a Liquidator’s Decision May Be Overturned in the British Virgin Islands

Synopsis

The appointment of a liquidator is a significant occurrence in the life of a BVI company. Aside from the obvious implication that the life of the company will ultimately be brought to an end, a significant power shift occurs in the management of the company. Once appointed, the liquidator assumes control and custody of the assets of the company. The directors, though they remain in office, are divested of their powers and have no powers, functions or duties other than those expressly preserved by the BVI Insolvency Act, 2003 (the 'Act'). Creditors of the company assume primacy in place of the members and members are prohibited from exercising any of the powers granted to them under the company’s memorandum and articles of association.