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Tempo Group Ltd. -v- Fortuna Development Corporation Cause No. FSD 82 of 2011, per Henderson J (24 February 2012)

February 2012 Companies

CAYMAN ISLANDS

GRAND COURT

COMPANIES - DIVIDENDS - PRE-JUDGMENT INTEREST ON UNPAID DIVIDEND

Application was brought to determine whether the Court was able to award pre-judgment interest when it grants judgment to a shareholder for unpaid dividends, notwithstanding that the articles of association of the Company state that no dividend shall bear interest against the Company.

While there is non-binding authority for the proposition that the court is not empowered to award interest on a dividend debt where the articles contain the usual provision that dividends do not bear interest, the better view is that the court retains the discretion to award interest but it should be exercised so as to give effect to the agreement of the shareholders, which is evidenced by the articles. Looking to the intention of the parties as memorialized in the articles, the Shareholders clearly surrendered any right to interest on a dividend during the period between its declaration and the date set for its payment. There is nothing in the articles to suggest that the Shareholders were giving up the right to claim interest on dividend debt litigation against the Company. Such litigation was entirely outside the contemplation of the parties when they reached their agreement.

 

To continue reading full articles in PDF format:
Tempo Group Ltd. -v- Fortuna Development Corporation Cause No. FSD 82 of 2011, per Henderson J (24 February 2012)

 

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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

Tempo Group Ltd. -v- Fortuna Development Corporation Cause No. FSD 82 of 2011, per Henderson J (24 February 2012)

01 February 2012

CAYMAN ISLANDS

GRAND COURT

COMPANIES - DIVIDENDS - PRE-JUDGMENT INTEREST ON UNPAID DIVIDEND

Application was brought to determine whether the Court was able to award pre-judgment interest when it grants judgment to a shareholder for unpaid dividends, notwithstanding that the articles of association of the Company state that no dividend shall bear interest against the Company.

While there is non-binding authority for the proposition that the court is not empowered to award interest on a dividend debt where the articles contain the usual provision that dividends do not bear interest, the better view is that the court retains the discretion to award interest but it should be exercised so as to give effect to the agreement of the shareholders, which is evidenced by the articles. Looking to the intention of the parties as memorialized in the articles, the Shareholders clearly surrendered any right to interest on a dividend during the period between its declaration and the date set for its payment. There is nothing in the articles to suggest that the Shareholders were giving up the right to claim interest on dividend debt litigation against the Company. Such litigation was entirely outside the contemplation of the parties when they reached their agreement.

 

To continue reading full articles in PDF format:
Tempo Group Ltd. -v- Fortuna Development Corporation Cause No. FSD 82 of 2011, per Henderson J (24 February 2012)

 

 

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