Nilon Ltd v Royal Westminster Investments SA [2015] UKPC 2 On 21st January 2015, the Privy Council gave judgment in Nilon Ltd v Royal Westminster Investments SA [2015] UKPC 2. The effect of the Board’s judgment is to restrict the British Virgin Islands (“BVI”) court’s ability to exert and exercise its jurisdiction to hear disputes over the ownership…
In Philpott v Lycee Francais Charles De Gaulle School [2015] EWHC 1065 (Ch), the English High Court held that an arbitration clause in a contract to which a company was a party remained enforceable, notwithstanding that the company was being wound up in insolvency. Could the same result ensue in the winding up of a BVI business…
As a result of its mid-shore, white listed status, New Zealand provides an ideal platform for international tax planning through the prudent use of trusts. In addition, New Zealand’s mid-shore status means that trusts have access to tax treaty benefits, potentially reducing the overall tax burden of the structure. TAX POSITION New Zealand (“NZ”) offers…
Retention of Records – clarification for BVI companies and extension to BVI trusts and all BVI partnerships This year we have seen the enactment of the Trustee (Amendment) Act 2015, the Partnership Amendment Act 2015 and the Mutual Legal Assistance (Amendment) Act 2015 relating to the retention of certain records and documents by such entities,…
The status of redeeming members from a fund can be very important in the event of a fund going into liquidation. Those who have redeemed their shares, but not yet received payment, will outrank continuing members when it comes to distribution of the net assets of the estate (Somers Dublin v Monarch Pointe (HCVAP 2011/040, 11…
Appointment of liquidator: a “judicial” discretion It is often said that the Court’s power to appoint a liquidator over a company is discretionary in nature. Indeed, the BVI court’s discretion is explicitly enshrined in statute: section 167 of the Insolvency Act, 2003 (the “Act”) grants the Court broad powers at the hearing of an application…
One of the claims brought by the liquidators of Bilta (see Part 1 above for the factual background) was a claim under section 213 of the English Insolvency Act. That section provides that where the business of a company being wound up was carried on with any fraudulent purpose the court may declare that any…
BVI Legal Profession Act is finally enacted – Karen Gilbert I can vividly remember being urgently flown out to the BVI just days after accepting a new role as a BVI lawyer. It was a two day trip, the aim of which was to get me admitted as a BVI lawyer before the imminent (or…
Companies caught up in wrongdoing by reasons of the acts of their directors or agents may suffer losses themselves in the form of liabilities incurred to creditors. If such companies subsequently go into liquidation, their liquidators will seek to recover as much as possible for the creditors. The liquidators may try to do so by…
FATCA UPDATE Readers will be aware that on 30 June 2014 the Government of the BVI signed a Model 1(b) intergovernmental agreement (“IGA”) with the United States to implement the US Foreign Account Tax Compliance Act (“FATCA”). As result, the BVI committed itself to improving international tax compliance and reducing the possibility of US tax…