Voluntary Administration – Directors Prevail Over Shareholders

On 16 June 2011, the Supreme Court of Mauritius, acting through its jurisdiction of Judge in Chambers, delivered an Interlocutory Judgment on the appointment of an administrator under the Insolvency Act 2009. This recent piece of legislation has replaced existing legislation, and now governs matters touching on insolvency and winding-up in Mauritius.

In Alridge v. Mordaunt Estates Ltd 2011 SCJ 186, a shareholder challenged both a decision taken by the board of directors of a Mauritian company to place the company into voluntary administration and the appointment of an administrator.

The shareholder applied to the Judge in Chambers for an Interim Writ of Injunction:

1. to prohibit forthwith the administrator from continuing to act as administrator of the Mauritian company; and