Representation of Standish, Milsom and Outen re Ablyazov [2013] JRC 195 (04 October 2013)

Representation of Standish, Milsom and Outen re Ablyazov [2013] JRC 195 (04 October 2013)

The Royal Court of Jersey has jurisdiction, on conflict of law principles and in the interests of comity, to recognise and give effect to an English High Court order appointing receivers as managers over a Jersey company, thereby suspending the powers of its directors, even in the absence of a domestic statutory power to appoint managers. The recognition is justified by the need to secure assets, prevent improper dealings, and ensure the effectiveness of the receivership, particularly given the conduct of Mr Ablyazov and the international context.

Citation
[2013] JRC 195
Parties
Representors/receivers: David Standish, John Milsom, Jeremy Outen; Respondent/company Subject to Receivership: Eurasia Logistics Limited; Respondent/corporate Director of Eurasia: Nautilus Trust Company Limited; Defendant/owner of Assets: Mukhtar Ablyazov
Jurisdiction
Jersey
Judgment Date
04 October 2013
Procedural Posture
Application for Recognition of Foreign Receivership and Managerial Order / Post Receivership, Application for Recognition of Amendments to Receivership Order
Outcome
Application granted in substantial part; amendments to the English receivership order recognised; receivers' appointment as managers over Eurasia Logistics Limited recognised; directors' powers suspended.
Legal Topics
Recognition of Foreign Receivership Orders, Appointment of Managers Over Jersey Companies, Powers of Receivers and Managers, Suspension of Directors' Powers, Comity, Enforcement of Foreign Judgments
Conflict of Laws Company Law Insolvency Law Recognition of Foreign Receivership Orders Appointment of Managers Over Jersey Companies Powers of Receivers and Managers Suspension of Directors' Powers Comity +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 11 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

David Standish, John Milsom, Jeremy Outen

Representors/receivers

Eurasia Logistics Limited

Respondent/company Subject to Receivership

Nautilus Trust Company Limited

Respondent/corporate Director of Eurasia

Mukhtar Ablyazov

Defendant/owner of Assets

Procedural Posture

Application for Recognition of Foreign Receivership and Managerial Order / Post Receivership, Application for Recognition of Amendments to Receivership Order

Legal Issues

  1. 1 Whether the Royal Court of Jersey has jurisdiction to recognise and give effect to an English receivership order appointing managers over a Jersey company, thereby suspending the powers of its directors.
  2. 2 Whether the absence of a domestic statutory power to appoint managers precludes recognition of a foreign order conferring such powers.
  3. 3 Whether the receivers should be granted ancillary powers, including the ability to appoint/remove directors and register themselves as shareholders in subsidiaries.

Ratio Decidendi

The Royal Court of Jersey has jurisdiction, on conflict of law principles and in the interests of comity, to recognise and give effect to an English High Court order appointing receivers as managers over a Jersey company, thereby suspending the powers of its directors, even in the absence of a domestic statutory power to appoint managers. The recognition is justified by the need to secure assets, prevent improper dealings, and ensure the effectiveness of the receivership, particularly given the conduct of Mr Ablyazov and the international context.

Court Disposition

Application granted in substantial part; amendments to the English receivership order recognised; receivers' appointment as managers over Eurasia Logistics Limited recognised; directors' powers suspended.

Orders

  • Receivers recognised as managers of Eurasia Logistics Limited; directors' powers suspended and assumed by receivers or their nominees, except as authorised in writing by receivers.
  • Receivers authorised to exercise voting power as shareholders in Eurasia's subsidiaries and to appoint/remove directors of Dayen Environmental Limited, Nupto Limited, and Jollafield Holdings Limited.