Voluntary Liquidation: An Almost Irreversible Procedure

Can a company that has been voluntarily wound up be restored to good standing on an application by a former shareholder, liquidator, or director, who has a change of heart as regards the company's liquidation? The answer to this question, an issue which presents itself from time to time, has now been reaffirmed, following the recent High Court decision¹ (the decision in the Four), which confirmed the BVI position as established in the case of Dedyson Enterprises Ltd v Registrar of Corporate Affairs (BVIHCM 2011/0008) and confirmed in Yeung Kwok Mung v The Attorney General and the Financial Services Commission (BVIHCM 2011/0002).

The claims, the subject of the decision in the Four, were brought by the former liquidator of four BVI companies: Brilliant Era Limited; Elite Source Ltd; Korri Capital Ltd; and Careland International Ltd (the Companies). The rationale behind seeking restoration of the Companies was twofold. Firstly, it would allow listing requirements to be