British Virgin Islands Insolvency Act, 2003 and Related Legislation
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As a service to our clients, we have prepared this compendium of the Insolvency Act, 2003 together with related regulations and rules, incorporating all amendments to date.
The most recent legislative update includes amendments to sections 162, 163, and 170 of the Insolvency Act, 2003 made by the Insolvency (Amendment) Act, 2019 effective 24 December 2019.
The Insolvency Act, 2003 and the Insolvency (Amendment and Consequential Provisions) Act, 2004 were proclaimed in force as of August 16, 2004. The Insolvency (Transitional Provisions) Regulations, 2004 (the “Regulations”) deal with transitional matters. The Regulations provide that the Court may make an order in respect of a transaction entered into or created prior to the commencement date (which is deemed to be August 16, 2004) only to the extent it could have made such order under the former law. The Regulations define “former law” as the enactments and rules of law repealed, amended or modified by the Insolvency Act, 2003, the Insolvency Rules, 2004 and any regulations made under the Insolvency Act, 2003. It is a matter of interpretation whether the significant amendments resulting from the Insolvency (Amendment and Consequential Provisions) Act are included in the definition of “former law”.
Part III of the Insolvency Act, which encompasses sections 74 through 114, contains the provisions dealing with administration orders, these provisions have not yet been brought into force.
The provisions of Part XVIII of the Insolvency Act, 2003 are not in force. This Part, which encompasses sections 436 through 465, contains the provisions dealing with cross-border insolvency. The Government of the British Virgin Islands has stated that these provisions will not be brought into force until such time as there is a “level playing field” with respect to the UNCITRAL model on cross-border insolvency, meaning that the model be adopted by many jurisdictions. It is not anticipated that the provisions of Part XVII will come into force any time in the foreseeable future.
Conyers Dill & Pearman
British Virgin Islands
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