Deacons recently successfully secured the recognition of a Hong Kong Committee Order by the BVI High Court on 17 February 2025. This recognition enables family members to manage the movable assets of a mentally incapacitated person in the BVI.
We understand that this is a ground-breaking case in which the BVI Court made the recognition order based on common law and the Mental Health Act in the BVI.
Significance of BVI Recognition
It is a well-established principle that the BVI Courts have the authority to recognize foreign monetary judgments, probate grants, appointments of foreign insolvency administrators, and foreign commercial receivership orders.
Previously, it was not clear whether the BVI Court could also directly recognize a foreign Committee appointed by the Court of First Instance in Hong Kong under Part II of the Mental Health Ordinance, to manage the financial affairs of a mentally incapacitated person. Our recent case has now made this certain.
Preserving a Family’s legacy in BVI
This case involves an elderly patriarch, who is the major shareholder and sole director of two BVI companies. He suffered a sudden stroke, completely lost his mental capacity and has been in a coma for over a year.
In addition to helping our clients obtain a Committee Order from the Court of First Instance in Hong Kong to manage the elderly patriarch’s financial affairs and business, we engaged Harneys as our BVI lawyers to obtain recognition of the Committee Order by the BVI courts and to register a change of shareholder and director, to ensure the smooth running of the BVI companies and corporate compliance with BVI laws and regulations.
Impact and Way Forward
Since the loss of mental incapacity is often unpredictable and we have seen an increase in the number of healthy individuals and entrepreneurs losing their capacity either through accident or sudden onset of a stroke, the impact on a family’s financial and corporate interests can be huge.
The number of Hong Kong individuals holding shares in BVI companies is substantial. By securing the recognition of a Hong Kong Committee Order in the BVI, families and business partners will be able to navigate through these unexpected circumstances with greater confidence.
Please contact us if you wish to understand more about how to handle personal and business matters involving mental capacity issues and how to obtain a Hong Kong Committee Order and subsequent recognition in other jurisdictions to preserve and protect your cross-border assets.
For Further information, please contact:
Sherlynn Chan, Partner, Deacons
sherlynn.chan@deacons.com
