Injunctive Relief In Another Form? Cayman Court's Jurisdiction To Appoint JPLs Despite Ongoing Arbitration

In Peakwave Investment Management Ltd v Energy Evolution GP Ltd,¹ the Grand Court confirmed that it has jurisdiction to appoint provisional liquidators notwithstanding the fact that the company's shareholders are engaged in an arbitration over its affairs, as mandated by a binding arbitration agreement. This article considers the decision and its implications.

INTRODUCTION

In recent years courts around the world have grappled with the interaction between arbitration and winding up proceedings – both in the context of creditors' petitions and just and equitable petitions involving shareholder disputes.² Most notably, in the Cayman Islands, the Privy Council in FamilyMart China Holding Co Ltd v Ting Chuan (Cayman Islands) Holding Corp (FamilyMart) considered how the presence of a binding arbitration agreement between the parties affected the resolution of just and equitable winding proceedings. The effect of the Board's decision was that there would be a bifurcated process: legal and