Enforcement of PRC judgments in BVI establishes important precedent

The British Virgin Islands (BVI) Court has for the first time recognised and enforced judgments delivered by the Court of the People’s Republic of China (PRC). It is a significant development in light of the established practice of Chinese individuals and entities using BVI corporate entities as asset holding vehicles. The decision sets a significant precedent as many practitioners and judgment creditors alike in the PRC have historically considered BVI corporate entities (and their assets) as being beyond the reach of the PRC courts and often left ‘forgotten’, notwithstanding the well-established rules for recognition and enforcement of foreign awards and judgments in the BVI.

Related briefings

Trustees – finding certainty in uncertain times

There is an old saying, attributed to the French Philosopher Voltaire, that ‘doubt is not a pleasant condition but certainty is an absurd one’. For trustees of trusts governed by the laws of the Cayman Islands (Cayman), and indeed for trustees worldwide, doubt as to the future value of trust assets (and as to the future needs or actions of beneficiaries) may be their new default condition as they deal with the upheaval brought on by recent global events.

Latest Briefings

Setting aside company transactions involving Jersey, Guernsey and BVI companies

Financial pressure can change perspectives on transactions – whether through the lens of an insolvent winding up, in the context of a counterparty or related interested party exploring ways in which they might unravel a transaction, or a new board considering whether a company can extricate itself from contractual arrangements that appear to have been subject to a conflict of interest or which were for an improper purpose.

Update on economic substance in the Cayman Islands

Along with its fellow Crown Dependencies and Overseas Territories, the Cayman Islands now has comprehensive economic substance legislation, under which in-scope entities that carry on particular activities are required to demonstrate economic substance in Cayman.

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