A recent decision in the British Virgin Islands
("BVI"), BVIHC (Com) 0032 of 2018, is
notable as being the first case of which we are aware where the BVI
Court has recognised and enforced judgments from the People's
Republic of China ("PRC") Courts (and may assist future
applicants seeking reciprocal relief from the PRC Courts for
recognition of BVI Court orders). The case involved an application
by a bank from the PRC for the appointment of post-judgment
receivers by way of equitable execution over shares in a BVI
company in order to enforce a multi-million dollar judgment
debt.
Importantly, the order gives the court appointed receivers the
ability to exercise shareholder voting rights and to take effective
control of the BVI company by changing its board of directors
("Board"). This should enable the value
of the shares to be maximised, and should therefore theoretically
aid the enforcement of future judgments where assets are held in a
BVI incorporated vehicle.
