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Cornhill Natural Resources Fund Limited -v- Libyan et al [2016] SC (Bda) 9 Com

January 2016 Companies Redemption of Shares Public International Law Freezing Orders

BERMUDA

SUPREME COURT

FROZEN ASSETS - INTERPRETATION OF STATUTE - PUBLIC INTERNATIONAL LAW

This case concerned the application of UK legislation (The Libya (Restrictive Measures) (Overseas Territories) Order 2011) (the “Order”) giving effect to UN Security Council Resolutions requiring various measures against Libya, including freezing assets held by certain individuals or entities. The Plaintiff was an investment fund (“the “Fund”) in which the sole investor was the second Defendant (“HSBC”) as a nominee for the first Defendant, the Libyan Investment Authority (“LIA”). In October 2013, HSBC requested the redemption of all of its shares in the Fund, the cash proceeds of which were to be paid to the LIA’s bank account in the UK, which had been frozen. The Fund, anxious to avoid breaching the UK legislation, was concerned as to whether they would require approvals or licences from certain regulatory authorities including the Governor of Bermuda. It sought the Court’s guidance on whether a licence from the Governor was necessary in order to process the redemption request. The LIA contested that not only was no licence necessary, but also that as a result of amendments to the Order, the Investment Shares were no longer frozen.

 

To continue reading full articles in PDF format:
Cornhill Natural Resources Fund Limited -v- Libyan et al [2016] SC (Bda) 9 Com

 

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EDITOR & HEAD OF LITIGATION BERMUDA

Christian R. Luthi
Tel: +1 441 298 7814
Email: christian.luthi@conyersdill.com


Head of Litigation British virgin islands

Mark J. Forte
Tel: +1 284 852 1113
Email: mark.forte@conyersdill.com


Head of Litigation Cayman Islands

Paul Smith
Tel: +1 345 814 7777
Email: paul.smith@conyersdill.com


HEAD OF THE ASIA DISPUTES & RESTRUCTURING GROUP

Nigel K. Meeson, QC
Tel: +852 2842 9553
Email: nigel.meeson@conyersdill.com

Offshore Cases

Cornhill Natural Resources Fund Limited -v- Libyan et al [2016] SC (Bda) 9 Com

14 January 2016

BERMUDA

SUPREME COURT

FROZEN ASSETS - INTERPRETATION OF STATUTE - PUBLIC INTERNATIONAL LAW

This case concerned the application of UK legislation (The Libya (Restrictive Measures) (Overseas Territories) Order 2011) (the “Order”) giving effect to UN Security Council Resolutions requiring various measures against Libya, including freezing assets held by certain individuals or entities. The Plaintiff was an investment fund (“the “Fund”) in which the sole investor was the second Defendant (“HSBC”) as a nominee for the first Defendant, the Libyan Investment Authority (“LIA”). In October 2013, HSBC requested the redemption of all of its shares in the Fund, the cash proceeds of which were to be paid to the LIA’s bank account in the UK, which had been frozen. The Fund, anxious to avoid breaching the UK legislation, was concerned as to whether they would require approvals or licences from certain regulatory authorities including the Governor of Bermuda. It sought the Court’s guidance on whether a licence from the Governor was necessary in order to process the redemption request. The LIA contested that not only was no licence necessary, but also that as a result of amendments to the Order, the Investment Shares were no longer frozen.

 

To continue reading full articles in PDF format:
Cornhill Natural Resources Fund Limited -v- Libyan et al [2016] SC (Bda) 9 Com

 

 

EDITOR & HEAD OF LITIGATION BERMUDA

Christian R. Luthi
Tel.: +1 441 298 7814
Email.: christian.luthi@conyersdill.com


Head of Litigation British virgin islands

Mark J. Forte
Tel.: +1 284 852 1113
Email.: mark.forte@conyersdill.com


Head of Litigation Cayman Islands

Paul Smith
Tel.: +1 345 814 7777
Email.: paul.smith@conyersdill.com


HEAD OF THE ASIA DISPUTES & RESTRUCTURING GROUP

Nigel K. Meeson, Q.C.
Tel.: +852 2842 9553
Email.: nigel.meeson@conyersdill.com