News & Updates

Cayman Islands services delayed due to Hurricane Beryl

Closures and Postponements UPDATED 5 July 2024 The hurricane warning has been lifted, however there may be delays as damage assessments are conducted and backlogs are cleared.  We request our clients’ patient understanding around any work requests for our Cayman Islands colleagues. — As of 3 July 2024, several businesses and government offices in the Cayman Islands have closed their operations due to Hurricane Beryl.

Marbury at the Hong Kong Sevens 2024

Over the 5-7 April weekend Marbury hosted close to 100 clients and friends of Marbury, and Marbury founder, Duncan Smith, at the Hong Kong Sevens – the premier tournament on the World Rugby Sevens Series.  As we finally recover after the exhilarating weekend, we at Marbury want to extend a heartfelt thank you to all our clients and overseas guests who joined us at the iconic Hong Kong Stadium. From the edge-of-your-seat matches to the vibrant atmosphere, it was a celebration of sportsmanship, camaraderie, and the spirit of rugby. We were thrilled to share this pitch-side experience with our clients providing an invaluable opportunity to cement and expand our relationships with you. As we bid farewell to the Hong Kong Stadium before it passes the torch to Kai Tak Sports Park, we couldn’t have asked for a better send-off.  Here’s to more successful collaborations and shared experiences in the future. Let’s keep the ball rolling!

Winding up BVI companies following the reform of the BCA

The British Virgin Islands (BVI) is a popular jurisdiction for establishing companies due to its favourable tax and regulatory environment. However, there are instances when a BVI company is no longer needed, and the decision must be made to either strike it off or initiate a voluntary liquidation. This article aims to shed light on the recent reform in BVI company regulations, highlighting its significance, potential impact, and the consequences of ignoring these changes.

Why is this new reform important?

The new reform in BVI company regulations introduced crucial changes that affect the process of striking off or liquidating a BVI company. Previously, a company struck off the BVI register would remain in a suspended state for seven years before automatic dissolution. However, effective 1 January 2023, companies failing to pay their licence fees can now be struck off and dissolved after a notice period of up to 90 days. This revision streamlines the dissolution process and eliminates the prolonged waiting period.

Impact on stakeholders

The reform has significant implications for various stakeholders, including BVI company owners, directors, and creditors. Voluntary liquidation is now considered the recommended method for closing a BVI company, as strike off and dissolution can leave the company in a vulnerable state during the waiting period. By opting for voluntary liquidation, stakeholders can ensure a formal and secure closure of the company, protecting their rights and interests.

Consequences of ignoring the reform

Failure to comply with the new regulations can have severe consequences for companies that choose to ignore them. If a dissolved company had remaining assets at the time of dissolution, those assets may be vested in the Crown authority (the BVI state). To reclaim rights to the assets, a formal application must be submitted to the BVI court within five years. Ignoring the reform puts the company’s assets at risk and may lead to potential loss and legal complications.

Furthermore, disregarding the new regulations can hinder the company’s ability to conduct business or defend itself against legal actions during the suspension period. This lack of legal standing can have adverse effects on the company’s reputation, financial stability, and ability to engage in future business activities.

Conclusion

The recent reform in BVI company regulations emphasises the importance of opting for voluntary liquidation over strike off and dissolution. By adhering to the revised process, stakeholders can ensure a secure closure of their BVI company, protect their assets, and avoid potential legal complications.

Ignoring these changes not only jeopardises the company’s assets but also exposes it to reputational damage and limited legal standing. It is crucial for BVI company owners and directors to stay informed and act in accordance with the new regulations to safeguard their interests and ensure a smooth transition out of their BVI company.

Related resource: Striking off in the BVI

Reminder: Changes to Strike off Regime and Restoration Process in BVI – Transitional period ends 30 June 2023

The BVI Business Companies (Amendment) Act introduced changes to the strike off regime and restoration process that may impact your BVI company. Specifically, these changes affect BVI companies that were struck off after 1 July 2016 and before 1 January 2023, and that have not yet been dissolved.

If you have any such existing struck off companies that you may need to restore, it is recommended that you take action now to avoid the costly, complicated, and potentially lengthy process of restoration through a Court application.