It has been two months since the Insolvency Act 2003 came into force in the British Virgin Islands (BVI). The new legislation represents a revolution in the statutory framework governing insolvent liquidations in the jurisdiction. The previous statutory regime based on the English Companies Act 1948 has been swept away and no longer applies to any company going into liquidation after 16 August, 2004.
The most noticeable practical difference under the new Act arises from the requirement that a licensed insolvency practitioner be appointed for every insolvent company even if such an appointment is made by members’ resolution rather than by the court. This is a very important change in a jurisdiction which has for many years dominated the offshore incorporations market, and has more than 500,000 registered international business companies.
