British Virgin Island ("BVI") and Cayman Islands
companies have been a popular choice of investment vehicle for Hong
Kong and Chinese companies and individuals. This article explores
the key tools available to members of BVI and Cayman companies in
order to protect their investments, which Hong Kong lawyers and
their clients should be aware of.
Offshore companies are typically used as holding companies for
Hong Kong and PRC companies, which ultimately own immovable assets.
These investment structures often involve both multi-national
investors and lenders, reflecting the increasing trend of
cross-border mergers, acquisitions, partnerships and joint
ventures.
During the pre-global financial crisis, such arrangements were
often concluded quicker than parties may have liked in order to
take full advantage of a particular opportunity or at a time when
joint venture parties enjoyed a healthy working relationship. We
are now, unfortunately, seeing the end of the
