Privy Council Upholds Shareholder Arbitration Agreement And Stays Just And Equitable Winding Up Petition

In FamilyMart China Holding Co Ltd v Ting Chuan (Cayman Islands) Holding Corporation, the Judicial Committee of the Privy Council (the " Privy Council ") held that a minority shareholder's complaints must be arbitrated pursuant to the terms of a shareholders' agreement, and stayed a just and equitable winding up petition filed in the Grand Court of the Cayman Islands. The Maples Group represented the successful party .

The judgment addresses the interplay between s.92(e) of the Companies Act (2022 Revision) (" Companies Act "), which permits shareholders to file a winding up petition based on any just and equitable ground² , and s.4 of the Foreign Arbitral Awards Enforcement Act (" FAAEA "). Section 4 gives effect to the New York Convention and provides, in respect of foreign arbitrations, that the court shall, on the application of any party to an arbitration agreement, stay any legal proceedings commenced in respect of any matter to be referred to