Insolvency (Amendment) Rules, 2023

Summary

This statutory instrument amends the BVI Insolvency Rules (Revised Edition 2020) made under the Insolvency Act. It introduces new notification duties involving the Virgin Islands Deposit Insurance Corporation (VIDIC) where a regulated person in liquidation is a bank, creates a new dissolution procedure for companies that have completed liquidation, and replaces references to the 'Commission' with 'Government' in provisions dealing with the Insolvency Surplus Account.

• Bank liquidations: Rules 153 and 158 are amended so that, where the company in liquidation is a regulated person that is a bank, required notices and documents must also be sent to VIDIC in addition to the Commission.
• New dissolution process: A new Division 8A (Rule 198A) requires the Registrar, once a liquidator files the final report and statement of realisations and distributions, to publish in the Gazette that liquidation is complete and the Registrar's intention to strike off or remove the company from the relevant register, specifying a date not less than 7 days after publication; the company is dissolved once that specified date expires.
• Insolvency Surplus Account: Rules 327, 328 and 329 replace references to the 'Commission' with 'Government' in connection with administration of the Insolvency Surplus Account, and provide that interest or income earned on the Account or its investments must be paid into the Consolidated Fund, with claimants having no entitlement to that interest or income.

The Rules commence on the date the Insolvency (Amendment) Act, 2022 comes into operation, rather than on a fixed date stated in this instrument.

Key obligations

• Liquidators or relevant office holders must send required notices/documents under Rule 153(3) and Rule 158 to VIDIC, in addition to the Commission, where the company in liquidation is a regulated person that is a bank.
• The Registrar must publish in the Gazette, upon a liquidator filing the final report and statement of realisations and distributions, notice that liquidation is complete and the Registrar's intention to strike off or remove the company's name, specifying a date not less than 7 days from publication.
• Interest or income earned on monies in the Insolvency Surplus Account, or on investments made from it, must be paid into the Consolidated Fund, and claimants have no right to claim such interest or income.

Applies to

regulated persons that are banks, liquidators, companies in liquidation, foreign companies, the Registrar, the Commission

Deadlines

• not less than 7 days from the date of publication: Minimum period the Registrar must specify in the Gazette notice before striking off or removing a dissolved company's name from the register.
• date that the Insolvency (Amendment) Act, 2022 comes into operation: Commencement date of these Rules.

Related documents

• This document commences Insolvency (Amendment) Act, 2022