Regulators put P&I club into liquidation
British Steamship Protection and Indemnity Association Bermuda Ltd is being wound up after a successful petition to the Supreme Court by the Bermuda Monetary Authority.
The company, which was registered as a Class 2 insurer by the BMA in 2010, offered insurance as a P&I club, which is a mutually owned shipowners’ insurance company that provides marine insurance.
It is not a member of the International Club of P&I Clubs, an association of mutual insurers that provides 90 per cent of the world’s seagoing tonnage.
The BMA said it sought the winding-up order after British Steamship breached the Insurance Act, including by failing to appoint an approved auditor or to produce audited financial statements, failure to maintain adequate accounting systems and failed to maintain a registered office.
The company is a wholly owned subsidiary of British Steamship Protection & Indemnity Association Limed, a company incorporated in the Republic of the Marshall Islands. The directors of the company at all material times were Li Yu (otherwise known as Edwin Li) and Yang Dingdong. Both were based in Singapore.
The company was ordered to be wound up and Charles Thresh and Mike Morrison, of Teneo (Bermuda Ltd), were appointed as the joint provisional liquidators of the company.
A statement from the BMA said: “The authority viewed the above breaches as serious because of their extent and duration and no longer had confidence in the directors’ ability to manage the company’s affairs and to restore its compliance with the Insurance Act. The authority’s actions highlight the importance of its role in protecting the reputation of the jurisdiction and the interests of the public.”
If anyone has any immediate questions related to the company or the liquidation going forward, e-mail Charlie Thresh at Charles.Thresh@teneo.com or Mike Morrison at Mike.Morrison@teneo.com.
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