Filinvest Land to Dissolve Inactive BVI Subsidiary on Nov. 1
Key Takeaways
- •Filinvest Land will dissolve its dormant BVI-incorporated subsidiary Property Leaders International Ltd. on Nov. 1 via removal from the British Virgin Islands' Register of Companies.
- •PLIL was incorporated on Feb. 7, 2017, as a company limited by shares and has no material assets or liabilities, allowing a direct strike-off without full liquidation proceedings.
- •FLI stated that the expected dissolution will not have any material impact on its financial position, business, operations, or stockholders.
- •The PLIL wind-up brings to four the number of subsidiaries FLI has moved to dissolve in roughly two months, following September disclosures involving Proleads Philippines, Realpros Philippines, and Filinvest Lifemalls Mimosa.
- •Filinvest Land shares closed unchanged at P0.69 apiece on Tuesday, the same day the dissolution filing was disclosed.
Philippine-listed property developer Filinvest Land, Inc. (FLI) will dissolve Property Leaders International Ltd. (PLIL), an inactive subsidiary incorporated in the British Virgin Islands (BVI), on Nov. 1 as part of efforts to streamline its corporate structure.
In a regulatory filing on Tuesday, FLI said PLIL is expected to be removed from the British Virgin Islands' Register of Companies and dissolved on the scheduled date. Removal from the register is the standard mechanism for winding up a dormant company; once effective, the entity ceases to exist as a legal person.
PLIL was incorporated on Feb. 7, 2017, as a company limited by shares. FLI said the subsidiary has no material assets or liabilities — a profile that allows an unused offshore vehicle to be struck off directly, without the asset distributions and creditor settlements a full liquidation would involve.
"Its expected dissolution is not anticipated to have any material impact on FLI's financial position, business or operations, or on its stockholders," the company said.
The BVI, a British Overseas Territory in the Caribbean, is a widely used jurisdiction for incorporating offshore holding companies, and listed firms periodically wind up dormant entities registered there as part of routine corporate housekeeping. Even inactive entities carry ongoing registry fees and compliance filings, so striking off dormant vehicles is a low-cost way for listed groups to keep their corporate structures lean.
The planned dissolution follows FLI's disclosure in September of plans to dissolve three other subsidiaries: Proleads Philippines, Inc., Realpros Philippines, Inc., and Filinvest Lifemalls Mimosa, Inc. That brings to four the number of subsidiaries FLI has moved to dissolve within roughly the past two months.
According to the earlier disclosure, Proleads and Realpros were established to provide marketing and administrative support for FLI's real estate projects, while Filinvest Lifemalls Mimosa had not started commercial operations.
Shares in Filinvest Land closed unchanged at P0.69 apiece on Tuesday, the same day the dissolution filing was disclosed. — Alexandria Grace C. Magno
Source: BusinessWorld Online
