Jan 2014
BRITISH VIRGIN ISLANDS
COURT OF APPEAL
CIVIL APPEAL – INTERLOCUTORY APPEAL FILED WITH LEAVE – ENTITLEMENT OF VOLUNTARY LIQUIDATORS TO FEES AFTER THEY FORM VIEW THAT COMPANY IS INSOLVENT – INSOLVENCY ACT, 2003, SECTION 182, 430 – BVI BUSINESS COMPANIES ACT, 2004, SECTION 209, 210 – APPEAL AGAINST JUDGE’S FINDINGS OF FACT
This case concerned an appeal by the former joint voluntary liquidators (the “Appellants”) against parts of an Order made by Justice Bannister in the Commercial Court.
Following their replacement, the Appellants applied for their remuneration in the amount of HK$6.4 million. The creditors committee fixed the Appellants remuneration at less than half of that, in the amount of HK$3.1 million.
On application to the Court to fix their remuneration, the trial judge found that the appellants had realised the majority of the company’s assets within the first 12 months of their appointment and further found that from 26 August 2007 the Appellants remuneration should be limited to work which fell only within the (limited) scope of Section 182 of the Insolvency Act, 2003 (the “IA”). Section 182 provides for the voluntary liquidators to take the company’s assets into their custody and control, dispose of perishable goods, and to doing all such things necessary to protect the company’s assets.