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Offshore Cases

In the matter of Dyxnet Holdings Ltd (23 February 2015)

February 2015 Procedure

CAYMAN ISLANDS

COURT OF APPEAL

SECURITY FOR COSTS - GCR O.23 - COMPANIES WINDING UP RULES - INHERENT JURISDICTION OF THE COURT

Section 74 of the Companies Law (“Section 74”) provides that security for costs may be ordered to be provided by a plaintiff Cayman Islands company where the Court is satisfied that the assets of the plaintiff company will be insufficient to pay the defendant’s costs.

This statutory provision only applies to Cayman Islands companies. The Grand Court Rules (“GCR”) Order 23 provides for security for costs to be provided by a foreign plaintiff. This Rule does not apply to winding up proceedings. Winding up proceedings are governed by the Companies Winding Up Rules, 2008 (as amended) (“CWR”) which make no provision for security for costs. It was against this background that the Court of Appeal had to consider whether it had inherent jurisdiction to order a foreign company to provide security for costs in winding up proceedings.

 

To continue reading full articles in PDF format:
In the matter of Dyxnet Holdings Ltd (23 February 2015)

 

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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

In the matter of Dyxnet Holdings Ltd (23 February 2015)

19 February 2015

CAYMAN ISLANDS

COURT OF APPEAL

SECURITY FOR COSTS - GCR O.23 - COMPANIES WINDING UP RULES - INHERENT JURISDICTION OF THE COURT

Section 74 of the Companies Law (“Section 74”) provides that security for costs may be ordered to be provided by a plaintiff Cayman Islands company where the Court is satisfied that the assets of the plaintiff company will be insufficient to pay the defendant’s costs.

This statutory provision only applies to Cayman Islands companies. The Grand Court Rules (“GCR”) Order 23 provides for security for costs to be provided by a foreign plaintiff. This Rule does not apply to winding up proceedings. Winding up proceedings are governed by the Companies Winding Up Rules, 2008 (as amended) (“CWR”) which make no provision for security for costs. It was against this background that the Court of Appeal had to consider whether it had inherent jurisdiction to order a foreign company to provide security for costs in winding up proceedings.

 

To continue reading full articles in PDF format:
In the matter of Dyxnet Holdings Ltd (23 February 2015)

 

 

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