To Litigate Or Arbitrate – That Is The Question

The Carey Olsen Singapore team considers a recent trend in cases involving the extent of the Court's jurisdiction to determine a just and equitable winding up petition when faced with a valid arbitration agreement between the parties.

The tension between the exclusive jurisdiction of the Court to determine whether a company should be wound up on the just and equitable ground and the contractual obligation to arbitrate disputes between shareholders exists in multiple jurisdictions. Two recent decisions by the Cayman Islands Court of Appeal and the Hong Kong Court of First Instance provide welcome clarification on the position. It remains to see whether those decisions will be mirrored in other common law jurisdictions such as the British Virgin Islands.