Mar 2013
BRITISH VIRGIN ISLANDS
COURT OF APPEAL
BVI COMPANY – MUTUAL FUND – REDEEMED MEMBERS OF FUND IN LIQUIDATION CLAIMING REDEMPTION PROCEEDS IN PRIORITY TO CLAIMS OF CONTINUING MEMBERS – WHETHER JUDGE RIGHT TO ORDER LIQUIDATOR TO DISTRIBUTE PRO RATA BETWEEN CONTINUING MEMBERS AND REDEEMED MEMBERS
The central issue in this Appeal was, does an unpaid redeemed member of a BVI company in liquidation: (a) rank as a deferred creditor with higher priority than an ordinary unredeemed member; (b) have the same priority as an ordinary unredeemed member; (c) have the same priority as other creditors; or (d) fall into a “black hole” and have no claim at all (as argued by counsel for the continuing members at trial).