BRITISH VIRGIN ISLANDS
HIGH COURT (COMMERCIAL DIVISION)
UNPAID REDEEMING MEMBERS OF FUND IN LIQUIDATION – PRIORITY OF CONTINUING MEMBERS – SECTIONS 207 AND 197 OF THE INSOLVENCY ACT, 2003 (THE “ACT”) CONSIDERED
The issue in this case was whether unpaid redeeming members had priority over the claims of continuing members of a fund in liquidation. Somers Dublin Ltd A/C KBCS and Others (“Somers”) said that they ranked before members but after third party creditors such that they would be paid in priority to the continuing members who were only entitled to share in the surplus, if any, following distribution. Monarch Pointe Fund Limited (“Monarch”) maintained that an unpaid redeeming member was neither a member nor a creditor and therefore entitled to nothing.