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Eleanor Morgan

Eleanor Morgan

Partner | BVI

The End of a Liquidation: Dissolution - The Missing Link

10 July 2018

A recent unreported judgment in the matter of Dynasty Line Limited (In Liquidation) contains important guidance on the proper procedure for the termination of a liquidation and the release of the liquidator, which is a popular area of concern.

The Honourable Justice Chivers QC identified that there is a lacuna in BVI law regarding the dissolution of a company after the liquidation process, and that this should be brought to the attention of the Law Reform Committee.

Mourant brought the application to the court and highlighted that although the law did not provide for the dissolution of the company, there were a number of safeguards in place to prevent the company from reverting to the shareholders after the liquidation process.

The Court concluded that where a liquidation has come to its natural end, a liquidator should terminate the liquidation by filing the final report among other steps without the need of court guidance. A liquidator should still apply to the court for their release.

 

Contact

Eleanor Morgan

Eleanor Morgan

Partner | BVI

About Mourant

Mourant is a law firm-led, professional services business with over 60 years' experience in the financial services sector. We advise on the laws of the British Virgin Islands, the Cayman Islands, Guernsey, Jersey and Luxembourg and provide specialist entity management, governance, regulatory and consulting services.

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