How Foreign Creditors Obtain & Enforce Section 24A Interim Relief in the BVI (practical 2026 Guide)

Last reviewed: 17 May 2026

Foreign creditors holding claims against BVI-incorporated companies face a recurring challenge: assets can be moved, dissipated or concealed long before substantive proceedings conclude. BVI interim relief under Section 24A of the BVI Business Companies Act provides a powerful statutory gateway that allows the Eastern Caribbean Supreme Court (Commercial Division) to grant free-standing interim orders, including freezing injunctions, proprietary injunctions and the appointment of provisional liquidators, in support of foreign proceedings or to preserve assets at risk. With rising application volumes following recent Business Companies amendments and updated registry processes through 2024–2026, the practical mechanics of obtaining and enforcing these orders have become essential knowledge for cross-border enforcement counsel, insolvency practitioners and in-house legal teams.

This guide sets out the complete decision framework, step-by-step filing process, evidence requirements and enforcement tactics that foreign creditors need to succeed with a Section 24A application in the BVI in 2026.

Executive Summary & Decision Checklist for BVI Interim Relief

Section 24A empowers the BVI court to grant interim relief on a free-standing basis, meaning the applicant does not need to commence or maintain substantive proceedings in the BVI itself. A foreign creditor can apply where assets located in or connected to the BVI are at genuine risk of dissipation and the applicant can demonstrate a credible underlying claim in foreign proceedings. The court will weigh urgency, the strength of the prima facie case, the risk of injustice if the order is refused, and the balance of convenience between the parties.

Where the application succeeds, the court may grant freezing orders, appoint provisional liquidators with defined powers, or make ancillary disclosure orders, all of which can be enforced directly against BVI-situated assets, registered shares and nominee structures.

Should you apply? A five-point decision checklist:

• Jurisdictional gateway. Can you identify BVI-incorporated entities, BVI-registered shares, or assets held within the jurisdiction that justify invoking Section 24A?
• Prima facie claim. Do you hold a credible claim, whether debt, fraud, breach of fiduciary duty or contractual default, supported by documentary evidence?
• Risk of asset flight. Is there objective evidence (or a reasonable inference) of dissipation, asset stripping, restructuring or transfer designed to place assets beyond creditor reach?
• Urgency. Is the situation time-critical enough to justify ex parte relief, or is there sufficient time for an inter partes application with notice?
• Enforcement objective. Do you have a clear plan for what happens after the order is granted, whether that means appointing a provisional liquidator, tracing assets, or securing recognition of a foreign judgment?

Background & Legal Framework: Section 24A and the Statutory Gateway

Before the enactment of Section 24 of the BVI Business Companies Act, the BVI court’s power to grant interim relief in aid of foreign proceedings rested on common-law principles, including the well-known Chabra jurisdiction (permitting relief against non-parties who hold or control the defendant’s assets). While this common-law framework proved effective in many cases, it left gaps, particularly where no substantive BVI cause of action existed and the applicant’s proceedings were entirely foreign.

Section 24 was enacted to close that gap by conferring an express statutory jurisdiction on the BVI court to grant interim relief in circumstances where proceedings had been or were to be commenced in a foreign jurisdiction. The provision created a self-contained gateway: the court could act even where the BVI had no connection to the underlying dispute other than the presence of relevant assets or entities within the jurisdiction.

Section 24A refined and expanded this framework. It clarified the scope of the court’s power, confirmed that relief could be granted on a free-standing basis (without requiring parallel BVI proceedings), and addressed practical questions about the types of orders available, from freezing injunctions and proprietary injunctions to the appointment of provisional liquidators with broad investigatory and asset-preservation mandates.

Legislative Timeline and Key Developments

Key Cases & Authorities

Several authorities have shaped the court’s approach to Section 24A applications:

• Claimant X v A TVI Company (Eastern Caribbean Supreme Court). This decision confirmed the BVI court’s jurisdiction to grant free-standing interim relief where the statutory gateway is satisfied, providing guidance on the evidence threshold and the court’s discretion.
• BVI Commercial Court guidance on statutory jurisdiction. The Commercial Division has issued practice guidance confirming how Section 24A interacts with existing common-law principles, including the Chabra jurisdiction and Mareva-type relief.
• BVI High Court decisions on the test for interim relief in aid of foreign proceedings. These rulings have confirmed the applicable legal test, including the requirement to show a serious issue to be tried, a real risk of dissipation and that the balance of convenience favours the grant of relief.

The interaction between Section 24A and the earlier common-law powers is cumulative rather than exclusive: practitioners may rely on both the statutory gateway and the common-law Chabra principles where relevant, though Section 24A is now the primary route in most cross-border matters.

Who May Apply for BVI Interim Relief, Standing & the Test the Court Applies

The Section 24A gateway is available to a broad range of applicants. Foreign creditors, whether individual, corporate or institutional, may apply provided they can demonstrate a sufficient connection between the relief sought and the protection of assets or meaningful relief for creditors. Insolvency practitioners, including foreign-appointed liquidators, administrators and proposed provisional liquidators, also have standing to seek interim orders where the application is connected to insolvency proceedings commenced or contemplated abroad.

The court applies a structured test when considering Section 24A applications:

• Serious issue to be tried. The applicant must show a prima facie case on the merits of the underlying claim. The threshold is not proof on the balance of probabilities but rather a demonstration that the claim is neither frivolous nor vexatious.
• Real risk of dissipation. There must be objective evidence, or a reasonable inference from the surrounding circumstances, that assets will be moved, diminished or concealed if relief is not granted.
• Balance of convenience. The court weighs the prejudice to the applicant if relief is refused against the prejudice to the respondent if relief is granted.
• Adequacy of undertaking in damages. The applicant will typically be required to provide a cross-undertaking in damages (or fortification of that undertaking where the respondent can show a credible counterclaim for loss).
• Just and convenient. The court retains a broad discretion to grant or refuse relief based on the overall justice of the case, including considerations of international comity and the effectiveness of orders made by the foreign court.

Interaction with Insolvency Proceedings & Cross-Border Comity

Where a foreign creditor seeks BVI interim relief in the context of insolvency proceedings commenced abroad, the court will give careful consideration to principles of cross-border comity. The BVI court has shown a willingness to act in aid of foreign insolvency processes, particularly where the foreign office-holder can demonstrate that assets in the BVI are at risk and that the interim order will complement (rather than conflict with) the foreign court’s directions. This cooperative approach makes the BVI an increasingly attractive forum for asset preservation in multi-jurisdictional insolvency and fraud cases.

Step-by-Step Application Process for Section 24A BVI Interim Relief

A successful Section 24A application requires careful preparation. The following chronological playbook reflects current court expectations and filing procedures.

Pre-Filing: Forensic and Factual Groundwork

1. Identify the target. Confirm the identity of BVI-incorporated companies, registered agents, registered shares, bank accounts or other assets within the jurisdiction. Conduct corporate searches at the BVI Companies Registry.
2. Gather evidence of the underlying claim. Assemble documentary proof of the debt, cause of action or insolvency, loan agreements, invoices, court judgments, arbitral awards or evidence of fraud.
3. Document the risk of dissipation. Collect evidence of recent asset transfers, corporate restructuring, nominee changes, or other steps that suggest assets may be placed beyond reach.
4. Instruct BVI counsel. Engage a BVI commercial litigator early to advise on strategy, drafting and local court expectations.
5. Consider forensic accounting. Where the claim involves fraud or complex corporate structures, instructing a forensic accountant to prepare a tracing report will significantly strengthen the application.

Ex Parte (Urgent) Procedure, Best Practice & Evidence Threshold

Where urgency demands it, the BVI court can hear ex parte applications on short notice, in some cases within 24 to 72 hours. For ex parte applications, the evidential burden on the applicant is heightened: the court expects full and frank disclosure of all material facts, including facts unfavourable to the applicant’s case. Failure to provide full and frank disclosure is one of the most common grounds on which ex parte orders are subsequently discharged.

The applicant should prepare and file:

• An originating application or summons
• A supporting affidavit setting out the claim, evidence of dissipation risk, and the urgency justifying an ex parte hearing
• A draft order (in the form the court is asked to make)
• A skeleton argument addressing the legal test and relevant authorities
• An undertaking in damages (with evidence of the applicant’s ability to satisfy the undertaking)

Inter Partes Procedure, Notice, Hearing Bundles & Skeleton Arguments

Where the matter is not so urgent as to justify proceeding without notice, the applicant issues the application inter partes and serves it on the respondent. The respondent will then have the opportunity to file evidence in opposition and attend the hearing. The court typically lists inter partes interim hearings within two to six weeks of filing, depending on the complexity of the matter and the availability of the court.

Hearing bundles should include all filed evidence, relevant authorities, and any correspondence bearing on the urgency or risk of dissipation. Skeleton arguments should be concise, focused on the legal test, and should address the specific elements of the Section 24A gateway.

Checklist, What to File on Day 1

Evidence & Documentary Checklist for Section 24A Applications

The strength of a BVI interim relief application depends on the quality and completeness of the supporting evidence. The following checklist covers the core documentary requirements that practitioners should assemble before filing.

• Constitutional documents. Memorandum and articles of association of each BVI target company; certificate of incorporation; certificate of good standing (or evidence of struck-off status).
• Evidence of debt or claim. Loan agreements, invoices, promissory notes, arbitral awards, foreign court judgments, or evidence of fraud (misrepresentation, dishonest assistance, breach of fiduciary duty).
• Payment and transaction records. Bank statements, wire transfer confirmations, ledger entries, payment instructions and receipts documenting the flow of funds.
• Board minutes and corporate resolutions. Minutes showing decisions to transfer assets, change directors, amend share registers or restructure the company, particularly where these postdate the accrual of the claim.
• Asset registers and share registers. Evidence of BVI-held assets: registered shares, real property, intellectual property, bank accounts, investment portfolios.
• Tracing evidence. Forensic accounting reports, fund-flow analyses and exhibits showing how assets were moved from the debtor to third parties or nominee structures.
• Correspondence and communications. Emails, letters or messages evidencing the respondent’s knowledge of the claim and any steps taken to place assets beyond reach.

Affidavit Drafting: Contents, Exhibits & Disclosure Obligations

The supporting affidavit is the centrepiece of any Section 24A application. It should be structured to address each element of the legal test and should be drafted with an awareness that the court may read it as the primary (and sometimes only) evidential basis for granting relief.

Affidavit blueprint:

• Introduction. Identity of the deponent, their relationship to the applicant, and the source of their knowledge.
• The underlying claim. Concise summary of the cause of action, supported by exhibited documents.
• Foreign proceedings. Status and stage of any foreign proceedings, including copies of filed claims, judgments or awards.
• BVI connection. Identification of BVI entities, assets or structures and their relevance to the claim.
• Risk of dissipation. Specific facts, not generalised assertions, showing actual or apprehended asset movements.
• Urgency. Why the matter cannot await an inter partes hearing (for ex parte applications).
• Full and frank disclosure. A dedicated section addressing matters that may be adverse to the applicant’s case, this is mandatory for ex parte applications and strongly advisable for all applications.
• Relief sought. Cross-reference to the draft order and explanation of why each form of relief is necessary and proportionate.

Where evidence is based on information and belief (hearsay), the deponent must identify the source of the information and the grounds for the belief. The court will give less weight to unsupported hearsay, and an application that relies heavily on it may fail.

Provisional Liquidators in the BVI: Appointment, Powers & Interplay with Section 24A Relief

The appointment of a provisional liquidator is one of the most effective forms of BVI interim relief available under Section 24A. A provisional liquidator can be appointed where the court is satisfied that the company’s assets are at risk and that an independent officeholder is needed to preserve, investigate and control those assets pending the determination of substantive proceedings.

The powers of a provisional liquidator in the BVI are defined by the terms of the court order and may include:

• Preservation and control of assets. Taking custody of company property, bank accounts and records.
• Investigation. Examining the company’s affairs, transactions, books and records; interviewing directors and officers.
• Obtaining documents. Requiring the production of corporate documents from directors, registered agents and third parties.
• Reporting to the court. Filing reports on the company’s financial position, asset location and any evidence of wrongdoing.
• Realising assets. Where the court so orders, selling or otherwise dealing with company assets to preserve their value.

Framing Orders to Give Provisional Liquidators Practical Enforcement Tools

The effectiveness of a provisional liquidator appointment depends on the scope and clarity of the court order. Practitioners should draft proposed orders that specifically empower the provisional liquidator to take defined steps, including freezing stipulations (preventing the company from dealing with assets), preservation of books and records, and the power to instruct forensic accountants. Orders should also include directions for cooperation by the company’s directors, officers and registered agent. Ambiguity in the order is the single most common source of post-appointment enforcement difficulties.

Enforcement of Orders & Recognising Foreign Judgments in the BVI

Obtaining an order for BVI interim relief is only the first step. The practical value of the order depends on effective enforcement, a process that involves several distinct pathways depending on the nature of the relief granted and the assets involved.

Enforcement Pathways After a Section 24A Order

Once the court has granted an interim order, the applicant (or the appointed provisional liquidator) can take immediate steps to enforce it:

• Freezing orders. These are served on the respondent and on third parties (banks, registered agents, custodians) who hold or control relevant assets. Non-compliance with a freezing order constitutes contempt of court.
• Provisional liquidator steps. The provisional liquidator will attend at the company’s registered office, take control of records, notify banks and counterparties, and begin the investigatory process.
• Disclosure orders. The court may order the respondent to disclose the nature, location and value of assets, which can be critical for tracing and recovery.

Recognising and Enforcing Foreign Judgments in the BVI

Foreign creditors who have already obtained a judgment abroad will often seek to enforce that judgment in the BVI as part of their overall recovery strategy. The BVI does not have a comprehensive statutory regime for the reciprocal enforcement of foreign judgments. Instead, recognition and enforcement are pursued primarily through common-law principles: a foreign judgment may be enforced by commencing fresh proceedings in the BVI and applying for summary judgment on the basis of the foreign judgment, provided the judgment is final and conclusive, for a definite sum, and rendered by a court of competent jurisdiction.

Section 24A interim relief plays a critical supporting role in this process. By securing a freezing order or appointing a provisional liquidator at an early stage, the foreign creditor can preserve assets while the recognition process, which may take several months, is completed. Without interim protection, assets can be dissipated before a foreign judgment is recognised, rendering enforcement meaningless.

Interaction with Companies Registry & Enforcement Against Registered Shares

Many BVI assets take the form of registered shares in BVI companies, or interests held through nominee structures. Enforcement against these assets requires coordination with the BVI Companies Registry and, where applicable, the company’s registered agent. A provisional liquidator appointed under Section 24A can instruct the registered agent to freeze the share register, prevent transfers, and produce corporate records. Where shares are held through nominee arrangements, the court may make orders requiring the nominee to disclose the beneficial owner and to hold the shares pending further direction.

Updated registry processes implemented between 2024 and 2026, including requirements related to the Legal and Institutional Arrangements (LIA) framework, have introduced additional filing and verification steps that practitioners should account for when planning enforcement of orders against BVI entities.

Timelines, Costs & Likely Outcomes for BVI Interim Relief Applications

Realistic expectations about timing and cost are essential for effective planning. The following table summarises typical timelines and cost bands based on current BVI court practice.

Industry observers expect that cost estimates for complex multi-entity applications, particularly those involving forensic accounting, cross-border service and contested provisional liquidator appointments, will often exceed the upper ranges indicated. Early strategic planning and focused evidence preparation can significantly reduce both cost and hearing time.

Risks, Defenses & How Respondents Contest Section 24A Applications

Applicants should anticipate the most common defense strategies and prepare to counter them from the outset. Respondents to Section 24A applications in the BVI typically deploy one or more of the following tactics:

• Jurisdictional challenge. Arguing that the statutory gateway under Section 24A is not met, for example, that there are no relevant assets in the BVI or that the foreign proceedings are insufficient to trigger the provision.
• Merits attack. Contesting the strength of the underlying claim and arguing that the applicant has not demonstrated a serious issue to be tried.
• No risk of dissipation. Asserting that the evidence of dissipation risk is speculative or insufficient, and that assets are secure.
• Offer of security. Proposing to provide security (such as a bank guarantee or payment into court) as an alternative to interim relief.
• Failure of full and frank disclosure. Seeking discharge of ex parte orders on the ground that the applicant failed to disclose material adverse facts.
• Procedural defects. Challenging service, the form of the application, or compliance with local procedural rules.

The most effective way to pre-empt these defenses is rigorous evidence preparation, transparent disclosure (especially on ex parte applications), and clear, focused draft orders that are proportionate to the risk identified.

Practitioner Tips: Drafting the Order & Hearing Day Checklist

Successful applications are often won or lost on the quality of the draft order and the preparation for the hearing itself. Key practitioner guidance includes:

• Draft the order before the hearing. The court expects a clean proposed order that can be adopted (with modifications) at the hearing. Use precise language; define asset classes, geographic scope and time limits explicitly.
• Address penal notice requirements. Ensure the order contains a penal notice (warning of the consequences of non-compliance) so that it is enforceable by contempt proceedings.
• Prepare a concise chronology. Judges hearing interim applications in the BVI appreciate a one-page chronology of key events, transactions and procedural steps.
• Bring all exhibits in hard copy. Even where electronic filing is used, the court may request hard-copy bundles. Ensure exhibits are paginated and tabbed.
• Anticipate the return date. For ex parte orders, the court will fix a return date. Prepare for the return date hearing from the moment the initial order is made, do not wait until the respondent has filed evidence.

Conclusion

Section 24A has established the BVI as one of the most responsive jurisdictions for cross-border asset preservation and BVI interim relief. Foreign creditors who act early, assembling strong evidence, engaging experienced BVI counsel, and presenting focused applications with clear draft orders, stand the best chance of obtaining effective interim protection and converting that protection into meaningful asset recovery. The statutory gateway is broad, the court is experienced and efficient, and the enforcement tools available (including provisional liquidator appointments and freezing orders) are powerful. For any foreign creditor facing the risk of asset dissipation in or through BVI structures, the practical question is not whether Section 24A relief is available but whether the evidence has been properly marshalled to secure it.

Engage a qualified BVI commercial litigation practitioner at the earliest opportunity to assess jurisdiction, prepare the application, and plan the enforcement strategy that follows.

Sources

1. Mourant, BVI Interim Remedies in Aid of Foreign Proceedings (Guide)
2. Carey Olsen, BVI litigation: Significant changes from 31 July 2023
3. Ogier, BVI Commercial Court guidance on statutory jurisdiction
4. Harneys, Legal Guide: How to Get an Injunction in the BVI
5. LexisNexis, Interim Remedies & Emergency Measures in Support of Arbitration in the BVI
6. Weil (European Disputes Blog), Freezing the Law on Freezing Injunctions in the BVI
7. Eastern Caribbean Supreme Court, Claimant X v A TVI Company