Forms Of Security Under Mauritian Law

The hybrid nature of Mauritius' legal system becomes apparent when security is to be given as part of a transaction involving a Mauritian company. This may arise in the offshore context where a Mauritian offshore company has been established to hold shares in, for example, a power project in India, an important tax treaty partner for Mauritius. The capital intensive nature of power projects makes their financing a complex matter. Substantial institutional loans form a key element in the financing package. Institutional lenders require a raft of security measures to protect their interests. At the level of the power company in India there will be charges over the assets of the company. There will be a pledge of the shares in the Indian company by their shareholder usually the Mauritian company.