BVI directors’ duties post-liquidation (Re MBI International & Partners Inc (in liquidation); Mitchell v Al Jaber)

Article summary

Restructuring & Insolvency analysis: Decided by the England and Wales High Court applying British Virgin Islands (BVI) company law, the judgment of Mrs Justice Joanna Smith DBE is the culmination of a major cross-border insolvency action by Greig Mitchell and Kenneth Krys as joint liquidators (the Liquidators) of MBI International & Partners Inc (the Company) to recover misappropriated assets. The decision explores in unprecedented detail the duties owed by directors after their company has gone into liquidation. Joanna Smith J decided that, although the duties owed by directors as directors post-liquidation are very limited, a director who purports to deal with company property after the company has gone into liquidation may continue to owe a fiduciary duty in relation to that property. Such a fiduciary duty may persist even where the wrongdoer’s duties as a director have come to an end by reason of the liquidation. Written by Joseph Curl KC at 9 Stone...