Can a security interest be enforced without appearing before the BVI courts?
A4. Generally speaking, yes. If the security document is governed by a foreign law, then the means of enforcement is determined by that foreign law. It is probably unlikely that any foreign law will require an application to be made to the BVI courts. If the security document is governed by BVI law, then a number of possible remedies are open to the party holding the security. The most common remedy is to appoint a receiver who can vote the shares, receive dividends and (if they can find a market) sell the shares. Receivers can be appointed out of court. A power of sale can also be exercised without recourse to the court. However, to exercise a right of foreclosure, an application to the court is needed. Q5. How can the person taking security verify free and marketable title to the shares? A5. Under BVI law this can be difficult. Because there is no requirement to file documents in relation to the creation of security over shares, it is not usually possible to determine from publicly a
