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Mauritius: Landmark decision – Supreme Court revives Square Rock Ltd despite dissolution

14 March 2024
– 2 Minute Read

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Overview

  • In a significant case before the Bankruptcy Division of the Supreme Court of Mauritius, Christopher Peter Van Zyl & Ors, represented by members of the Bowmans Mauritian office, faced off against the Registrar of Companies in a pivotal legal matter.
  • The judgment highlights the evolving nature of corporate law and judicial interpretation. It also marks a significant milestone in Mauritian corporate law, reaffirming the judiciary's commitment to fairness and equity.

In a significant case before the Bankruptcy Division of the Supreme Court of Mauritius, Christopher Peter Van Zyl & Ors, represented by members of the Bowmans Mauritian office, faced off against the Registrar of Companies in a pivotal legal matter.

The dispute centred on the revival of Square Rock Ltd, which had been voluntarily wound up and dissolved. Despite initial resistance from the Respondent, who argued against the restoration post-dissolution, the Supreme Court of Mauritius rendered an historic decision in favour of the Applicants.

The Applicants based their case on Section 320(1) of the Companies Act, contending that it was just and equitable to revive Square Rock Ltd. They argued that the legislation, read in conjunction with pertinent sections of the law, allowed for such restoration, drawing on parallels with New Zealand case law for support. Notably, the Applicants presented compelling arguments, emphasising the absence of explicit legislative prohibition and advocating for consideration on a case-by-case basis.

The Respondent, however, maintained that the law did not permit restoration post-dissolution, citing statutory provisions and legislative intent. Despite their assertions, the Court ultimately sided with the Applicants, recognising the need for flexibility and discretion in such matters. The Court’s decision sets an interesting precedent in Mauritian jurisprudence, more so because the judgement was not appealed by the Registrar of Companies.

It highlights the evolving nature of corporate law and judicial interpretation. It also marks a significant milestone in Mauritian corporate law, reaffirming the judiciary’s commitment to fairness and equity. In addition, this judgment prompts reflection on the need for comprehensive legislative reforms in this domain. Read 20 years of the Companies Act.

Congratulations to Dave Boolauky and Bertrand Cheung who represented the successful Applicants.