Due to the global Coronavirus (COVID-19) pandemic and its effects on the Mauritian economy, on 15 May 2020, the Government of Mauritius enacted the COVID-19 (Miscellaneous Provisions) Act 2020 (the “Act”) which is intended to amend a number of existing laws so as to cater for the changes and impacts brought by the pandemic on the country, including the financial distress that certain companies are and/or will be facing during the pandemic.

Duty of directors on Insolvency

The Fourth Schedule of the Insolvency Act is amended to amend priority in which preferential creditors have to be paid.

Under the Fourth Schedule of the Insolvency Act (the “IA”), unpaid wages and salaries, up to a maximum of Rs 50,000, must now be paid after the liquidator or Official Receiver has settled the cost of the liquidator under sub-paragraph (1) of paragraph of the Fourth Schedule.

In a recent judgement delivered by the Commercial Division of the Supreme Court in Atelier Etude Limousin & Ors vs BPCE International Et Outre Mer & Anor 2014 SCJ 166 the court confirmed the prevailing practice that foreign companies could be granted fixed or floating charges by Mauritian entity as security for a financing.