The Global is a quarterly collection of corporate expert insights and analysis across Appleby's global jurisdictions.
Alongside the articles that feature as part of our 2024 Q2 Review edition, we have also included a set of follow-up FAQs from the insights we shared in our 2024 Q1 Review. Those questions and their answers can be found below..
HONG KONG: WHEN IS A COMPANY INSOLVENT – TO APPOINT OR NOT TO APPOINT A LIQUIDATOR IN THE BVI?
CAN A COMPANY BE DEEMED INSOLVENT EVEN IF IT IS ASSUMED TO BE SOLVENT UNDER A BALANCE SHEET TEST?
Yes, it is held that even if it is assumed that a company is solvent on the basis of a balance sheet test, it is still insolvent within the meaning of the Insolvency Act if it fails to pay a debt that is not disputed on substantial grounds.
SOMETIMES THERE IS A DELAY BETWEEN SERVICE OF DOCUMENTS AT THE COMPANY'S REGISTERED OFFICE AND IT COMING TO THE ATTENTION OF THE DIRECTORS. CAN I RELY ON THIS TO SET ASIDE A STATUTORY DEMAND OUT OF TIME?
No, if it is undisputed that the demand was properly served, this will not affect its validity and it is not possible for time to be extended.
IF I DO NOT APPLY TO SET ASIDE A STATUTORY DEMAND, BUT THE COMPANY IS SOLVENT, CAN I STILL DEFEND ANY SUBSEQUENT APPLICATION FOR THE APPOINTMENT OF LIQUIDATORS?
Yes, it is still open to the company to raise issues of solvency at that stage.
JERSEY: THE INTERNATIONAL STOCK EXCHANGE – ADMISSION OF ISSUERS & SECURITIES TO TISE SUSTAINABLE
ARE ALL ISSUERS AND SECURITIES SUITABLE TO LIST ON THE INTERNATIONAL STOCK EXCHANGE (TISE)?
In May 2024, TISE issued updated guidance in this regard, and we recommend that any potential issues (such as adverse information in the group structure which may be of concern) should be shared with us early in the listing application process, and prior to submission of the listing application. Our experts set out further guidance in our article on TISE structures and suitability.
WHY IS TISE THE LISTING VENUE OF CHOICE FOR ISSUERS LISTING DEBT SECURITIES ISSUED AS PART OF PRIVATE EQUITY ACQUISITION FINANCE STRUCTURES?
Appleby is a leading listing agent with TISE, and we facilitate a large number of these private equity acquisition debt securities listings. These are usually Eurobonds, but we can also help to list other types of loan notes, payment in kind notes (PIK Notes), variable funding notes, green bonds, high yield bonds, CLOs and convertible securities. This article explains the advantages of listing debt securities on TISE, including the wide international recognition enjoyed by TISE, as well as the delisting process.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.