Offshore Litigation Blog

In a recent decision of the Privy Council in FamilyMart China Holding Co Ltd v Ting Chuan (Cayman Islands) Holding, on appeal from the Cayman Islands, the effect of an arbitration clause on the court’s jurisdiction to wind up on the just and equitable ground was considered.

The recent Cayman Islands Grand Court decision in Re Youbi Capital (Cayman) GP has clarified the position regarding an application to strike out a winding up petition as an abuse of process where related proceedings are taking place in another jurisdiction.

On 10 November 2022, the Privy Council handed down its decision in Sancus Financial Holdings Ltd and others (Appellants) v Holm and another (Respondents) reaffirming its long-held practice to only entertain second appeals against concurrent findings of fact in exceptional cases.

In the recent judgment of Ma v Wong [2002] UKPC 14 the Privy Council unanimously dismisses the appeal against the dismissal of the unfair prejudice claim under s184I of the BVI Business Companies Act 2004, alleging breach of equitable constraints on the majority shareholders in relation to the conversion of preference shares into ordinary voting shares, changing the balance of power in the Third Respondent BVI-company (STIC), and breach of directors’ fiduciary duty in the exercise of power for an improper purpose.

On 17 January 2022, the BVI Commercial Court handed down judgment in Green Elite (In liquidation) v Fang Ankong et al, in which a claim for breach of directors’ duties was brought by the liquidators of Green Elite against the former directors of that company. The Court held that the directors breached the requirement under section 121 of the BVI BCA to carry out their duties for a proper purpose with the result that they were liable in restitution for certain sale proceeds received by them.

In this episode of our Take 10 podcast, Asia Managing Partner Ian Mann interviews Victor Joffe QC about his extensive legal career including his aspirations as a law student, his role models, how he overcame challenges and lessons learned, as well as helpful advice to younger generations of legal practitioners.

In the recent decision of the BVI Commercial Court in Hydro Energy v Zhaoheng, the Court continued the appointment of provisional liquidators and refused to stay the underlying application to wind up a BVI company on just and equitable grounds, notwithstanding that the applicant had already commenced arbitration proceedings in Hong Kong pursuant to which interim relief had already been granted.

In Yao Juan v Kwok Kin Kwok and Crown Treasure Group Limited, the Court of Appeal handed down another seminal decision on costs’ recovery agreeing with the Appellant that costs incurred by lawyers not admitted to practice in the BVI are not recoverable.

In the recent case of Sumitomo Mitsuitrust (UK) Ltd v Spectrum Galaxy Ltd BVIHC (COM) 2018/0172, Justice Jack considered the question as to whether an alleged breach of contract claim that fell outside the limitation period could nevertheless be relied upon in a BVI unfair prejudice claim. An earlier blog concerning amending pleadings at a late stage arose from the same set of proceedings.