Important Trends In BVI Insolvency Case Law

One of the aims of the BVI Insolvency Act (“the Act”) is to bring certainty to the insolvency regime in the BVI, including time limits for compulsory winding up procedures. In two recent cases the High Court gave a clear message that time limits will be strictly applied, even where this means a BVI company is then subject to a liquidation order.

The first case, Asiacorp Development Limited v Greensalt Limited concerned section 168 which provides that an application to appoint a liquidator shall be determined within 6 months after it is filed, and if it is not, it is deemed dismissed. The court can extend this period, but only if the application is heard before the 6 months have expired. In Asiacorp the parties agreed directions for the filing of evidence which went over the 6 month mark, and the question arose whether this waived the 6 month rule, or whether the court had jurisdiction to make an extension order outside the 6 months.