The resolution to wind up the company once passed can be annulled only by the High Court.In order for the company to return to a Normal status and recommence trading, a copy of the court order must be submitted. In a court winding up, the order may be granted under section 669 Companies Act 2014.The Official Receiver, due to his post, becomes the Provisional Liquidator and continues to act as such until he or another person becomes the Liquidator and is capable of acting as such.If during the winding up of a company from the court, a person other than the Official Receiver is appointed, that person is not capable of acting as a Liquidator until he informs the Company Registrar about his appointment and provide security to the specified type in order to meet the Court’s satisfaction criteria.The reason for this is, because, in terms of the Companies Act, the Close Corporations Act and the Trust Property Control Act, a Company, or a Close Corporation or a Trust (“the entity”) is insolvent the moment its liabilities exceed its assets. For this reason the entity does not have to own assets to be liquidated.Sometimes it is a difficult decision to make whether to liquidate an entity or not.Appointment as Liquidator Qualification Under sections 633 and 634 of the Companies Act 2014, certain qualifications are set out for the appointment as liquidator.
The principal duties of the liquidator are to: Where the company to be liquidated is a regulated entity under BVI law, the prior approval of the Financial Services Commission must be obtained.
Article 211 of the Companies Act (CAP113) sets out the circumstances under which the company may be liquidated by the Court.
An application for liquidation of the Court should specify which of the criteria of Article 211 is based upon: The criteria are: The key provisions of the legislation when a winding up decree is issued are the following: When a winding up decree is issued, it is customary to Order that the expenses are to be paid out of the company’s property and a copy of this Order must also be sent to the Company Registrar and Official Receiver.
In General lines, how can someone apply for the winding up of a Company by the Court?
When the liquidation of a Company is made through a Court Application, then a relevant Court Application must be submitted in Court which must be in drafted in a specified way, which is called a Petition, and must be submitted in the District Court of the District in which the registered office of the company existed at least six months preceding the date of the Court Petition.