Offshore: New regulations get Caribbean twist
The British Virgin Islands is used to high-profile litigation. The list of recent cases is a Who's Who of household names from the East, including Alfa, Oleg Deripaska's Rusal Trading, Roman Abramovich, the Reuben Brothers, Sibneft Oil, Lukoil and TNK-BP. Among the disputes involving these organisations, the extraordinary tale of IPOC stands out: IPOC's failed billion-dollar claim against Alfa ended with convictions against IPOC companies for perverting the course of justice, and a $45m (£25m) confiscation order by the BVI Government of IPOC assets. In many of these cases, the British Virgin Islands' (BVI's) Court applied familiar English common law principles. But in the recent case of Alfa Telecom Turkey v Cukurova Finance International - which is set for a further appeal - the BVI Court is effectively running a test case on English and European Union (EU) law principles. On 22 April, 2008 the Eastern Caribbean Court of Appeal handed down its decision in the case, reversing the original decision of the BVI High Court. The dispute centred around the English remedy of 'appropriation', under the Financial Collateral Arrangements No 2 Regulations 2003 (the 'Regulations'), as it applied to shares in BVI companies which are subject to an English law share mortgage.
This premium content is reserved for
Legal Week Subscribers.
Subscribe today and get 10% off.
A PREMIUM SUBSCRIPTION PROVIDES:
- Trusted insight, news and analysis from the UK and across the globe
- Connections to senior business lawyers within the leading law firms and legal departments
- Optimized access on all of your devices: desktop, tablet and mobile
- Complete access to the site's full archive of more than 56,000 articles
Already have an account? Sign In Now