Nilon Ltd v Royal Westminster Investments SA [2015] UKPC 2

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…

Features and Advantages of New Zealand as a Trusts Jurisdiction

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…

When does a redemption occur?

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

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…

Attribution of wrongdoing to companies: Jetivia part 1

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

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…