Legal Updates

Unlike striking off a company from the registry does not preclude it from suing or being sued

December 8, 2015
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A lawsuit was filed against a company registered in the British Virgin Islands and documents were served a director and authorized signatory in it who was also the controlling shareholder. The director objected to the serving of the documents upon him and argued, among other things, that the company was stricken off and under local law in the British Virgin Islands one cannot sue it as such. The Court held, that the documents may be served upon the director and the contention that one cannot sue the company under the laws of the British Virgin Islands is a contention to be proven during the proceeding. Under Israeli law a company's status being stricken off does not preclude proceedings against it as long as not dissolved. Sticking off a company is a matter between the company and the registrar of companies, and does not preclude the company from suing or being sued by a third party, as long as the company was not legally liquidated (and then be considered as dissolved).