New Liquidation Procedure in the BVI

The BVI Business Companies Amendments Act, 2012 and the BVI Business Companies Regulations, 2012 have come into force on 15 October 2012, and the procedure for liquidation of companies has been amended.  Following are the most relevant changes to be observed:

Declaration of Solvency:  This shall include an additional wording stating that the value of the company’s assets equals or exceeds its liabilities.  Please follow this link to see a template.

Liquidation Plan:  The time required to liquidate the company shall be 30 days.

Filing of the Appointment of Liquidator:  This shall be filed within 14 days of the appointment.  After this period, the resolution appointing the liquidator shall be deemed void.

Publication:  The liquidator must advertise notice of his appointment in at least one issue of a newspaper published and circulating in the BVI. 

Unless the company’s principal place of business is in the BVI, an advertisement must also be placed in at least one issue of a newspaper circulating in the place outside the BVI in which the company has a place of business, or if it has more than one place of business, its principal place of business. 

If the company does not have a place of business, or the voluntary liquidator does not know where its place of business is situated, an advertisement must be placed in such manner as the liquidator considers is most likely to come to the attention of any creditors of the company.  Please follow this link to see a sample of an advertisement.

Licensed companies:  Liquidation of companies that have at any time being granted a license by the BVI Financial Services Commission (“FSC?, shall seek for the approval of the FSC prior to its liquidation.