When a Cayman Islands company is in official liquidation, no proceedings or claims can be commenced against the company without the Cayman Court's permission. This requirement serves as a safeguard for the liquidation estate of the company in liquidation from being unnecessarily depleted at the expense of stakeholders of the liquidation.
The UAE Government recently passed legislation that substantially simplifies the procedure for obtaining a payment order.
Payment orders may offer an efficient method to obtain ex parte judgement against a debtor. They are frequently used when claiming amounts arising from bounced checks or other commercial instruments.
OW Bunker, one of the world’s major bunker suppliers and traders, and one of the largest companies in Denmark in terms of revenue, has filed for in-court restructuring for major parts of its business.
The subsidiaries involved face insolvency following the uncovering a $125m fraud in Singapore and a $150m risk management loss.
We have recently experienced an increase in mandates concerning disputes between shareholders and the Board of a Cayman company, which in many cases, leads to a shareholder applying to appoint provisional liquidators over the Company on a just and equitable basis. Therefore, we considered it important to remind those considering this remedy of the evidentiary hurdles they need to overcome to exercise it successfully.
UAE Legislators on 9 December 2018 issued a Decision of Council of Ministers Number 57 of 2018 (the Decision) regarding the recent amendments in Federal Law Number 11 of 1992 concerning the UAE Civil Procedure Code (the Civil Law). The decision issued by the Cabinet is major regarding the advertising and notification procedures. The present article by Legal Consultants of Dubai shed lights on the notification procedures in Execution cases. Following are the notable amendments made under the Decision regarding execution orders:
Global FDSI Briefing
Welcome to our latest quarterly briefing on legal developments across our global network. I hope you find the articles insightful and thought provoking. Highlights this quarter include recent developments in Italian derivatives case law, an overview of the amendments made to Spain’s insolvency regulation and the UK’s FCA issuing first warning notices against individuals.
If you have any questions or would like further information please do not hesitate to contact me, or one of our global key contacts.
[Matthew Allen]
Matthew Allen
Introduction
The civil procedure in the UAE is governed by the Federal Law No 11 of 1992 (Civil Procedure Code) as amended, along with the Cabinet Decisions (including Cabinet Decisions 57 of 2018 and 33 of 2020), and resolutions, etc. issued from time to time. The Civil Procedure Code regulates the procedure for litigation in civil, commercial, administrative, labour and personal status matters. It also governs the procedure of appeals and execution of judgments.
The court system in UAE is hierarchal and operates both at the federal level and a local level.
Introduction
When a limited liability company goes into liquidation, its creditors are faced with considerable uncertainty, not least over their rights to securities on loans made to the defaulter. In such cases, a number of questions arise, including the following:
Background
Under Dutch law, the directors of a (private) company can be held personally liable by the trustee for the bankruptcy deficit. Liability can arise when the directors have manifestly performed their management duties improperly and if it is reasonable to assume that bankruptcy was declared as a result. Section 2:248(4) of the Dutch Civil Code (DCC) contains a list of grounds for reducing the amount of the directors’ liability.
Decision
The High Court has recently held that the appointment of administrators by a sole director of a company with unamended Model Articles was valid.
Background
The document allegedly appointing the administrators of the company was a standard set of board minutes, reportedly chaired by a man and recording that a quorum was present. In fact, there was no meeting, and the decision was taken alone by the sole female director.