Liquidating a bahamian company
A charge of shares of an IBC may also be governed by the law of a jurisdiction other than the Bahamas.
The question whether an instrument has been effective to create a floating charge or a fixed charge is determined according to principles derived from English common law and will be based on: They may arise by contract, statute or operation of law.
Indeed notwithstanding that a winding-up order has been made, a creditor who has security over assets of a company is entitled to enforce his or her security without the leave of the court and without reference to the liquidator.
Similarly, property held on trust by a company, although subject to control of the liquidator, will not be available for general distribution.
This involves the transfer of the whole of the mortgagor’s legal interest in the property to the mortgagee, subject to the mortgagor’s right to redeem legal title upon repayment of the debt (known as the ‘equity of redemption’).
Under the new Regime, the meaning of insolvency has been expanded beyond the traditional ‘cash flow test’ to include the ‘balance sheet test’.This form of security commonly arises locally in favour of specific office holders, professionals and tradesmen who provide labour or incur expenses for which they are entitled to be remunerated. Do any special procedures apply to foreign creditors?These include provisional liquidators, receivers and receiver managers, attorneys and workmen who expend labour and skill on improving or repairing chattels bailed to them. UNSECURED CREDIT - What remedies are available to unsecured creditors? An unsecured creditor generally has no special rights over the property and assets of a debtor until he or she obtains and enforces a judgment.The Bahamas has recently undergone a major reform of its company liquidation regime.The Companies (Winding up Amendment) Act and the International Business Companies (Winding up Amendment) Act were enacted during late 2011 as part of a suit of reform initiatives to modernise our commercial legislation.