Bedell Cristin's Cayman Litigation & Dispute Resolution team has acted in a successful appeal in a case that confirms that contracts can limit a shareholders' ability to seek the winding up of a Cayman company on the just and equitable basis.
The decision handed down by the Cayman Islands Court of Appeal granted the appeal to strike out a winding up petition by Bedell Cristin's clients Al Jomaih Power Limited and Denham Investment Limited (the "Appellants")
The appeal is the latest stage of long-running litigation in the Cayman Islands Courts concerning K-Electric, Pakistan's largest electricity company.
The appeal focused on the wording of a shareholders' agreement, the electricity company's articles of association, and whether shareholders were restricted from presenting a winding up petition without unanimous consent.
The Court of Appeal's decision underlines the court's willingness to uphold contractual restrictions on the exercise of statutory rights and emphasises that restrictions will be enforced according to the natural and ordinary meaning of the words used in the contract.
Bedell Cristin partner Laura Hatfield acted for the appellants, supported by managing associate Jonathan Stroud and associate Vered Mazin.
Read our full briefing on the case here or through the link below.
Location: Cayman Islands
Related Services: Litigation & Dispute Resolution | Commercial Disputes (including Banking & Finance)
