Here is the converted article in markdown format:

BVI Court Upholds Right to Rescind Transactions Made with Intent to Defraud Creditors

The British Virgin Islands (BVI) court has reaffirmed its stance on upholding the right of creditors to rescind transactions made with intent to defraud them. In a recent ruling, the court emphasized that where a company is found to have been carrying out business activities with the intention of defrauding creditors, the court can take steps to rectify the situation.

The Power of the BVI Court

The BVI Court’s jurisdiction in this regard is based on its power to appoint an inspector to investigate the affairs of a company and report back to the court. The court can then use this information to make orders, including those related to the rescission of transactions made with intent to defraud creditors.

A Recent Case

In one recent case, a shareholder successfully brought an action against a BVI company and its directors, alleging that they had carried out business activities with the intention of defrauding him. The court appointed an inspector to investigate the company’s affairs and report back to the court. Upon reviewing the inspector’s report, the court found that the company had indeed been carrying out business activities with the intention of defrauding creditors.

Consequences for the Company

As a result, the court ordered the rescission of certain transactions made by the company, including:

• The sale of assets
• The payment of dividends

The court also imposed personal liability on the directors for any losses suffered by the company as a result of their breach of duty.

Significance of the Decision

The BVI Court’s decision is significant not only because it highlights the importance of upholding the rights of creditors but also because it demonstrates the court’s willingness to take action against companies and individuals who engage in fraudulent activities.