- in Asia
- within Accounting and Audit, Immigration and Insurance topic(s)
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.
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