Appleby Mauritius Quarter One Newsletter 2024
As we navigate through this dynamic year, Appleby’s first Mauritius newsletter of 2024 sees our team share some significant developments that have shaped the legal landscape and impacted our clients.
- Mauritius Financial Crimes Commission Act 2023: This landmark legislation represents a crucial milestone in Mauritius’ ongoing efforts to combat financial crimes. As a jurisdiction committed to transparency and integrity, we are proud to support these initiatives.
- Fund Finance Market: The fund finance sector continues to thrive, witnessing transformative changes and innovative developments. These advancements have reshaped how funds secure financing for their operations and investments. Our team remains at the forefront of these trends, ensuring our clients benefit from the latest strategies.
- Insolvency & Restructuring: we take a look on the role of receivers and the trends on statutory demands.
- Dispute Resolution Insights: Courts, both domestically and internationally, have issued noteworthy decisions. Certain legal precedents from foreign jurisdictions will be assessed in our local courts, enriching the evolution of Mauritius’ legal principles. Meanwhile, in Seychelles, the prevalence of crypto asset recovery and related disputes within IBC cases remains prominent. Courts are actively exploring novel approaches to deliver justice, such as embracing blockchain technology for voting in crypto platform restructurings. We are diligently monitoring these legal advancements.
- Data Protection in Seychelles: Our Seychelles office has experienced a significant development with the enactment of the Data Protection Act 2023. This legislation safeguards the privacy and security of personal information for Seychellois citizens. We stand ready to assist our clients in navigating this regulatory landscape.
The Financial Crimes Commission Act in Mauritius: Strengthening Efforts to Combat Financial Crimes
The passing of the Mauritius Financial Crimes Commission Act on 21 December 2023 (the Act) marks a commendable and significant milestone in the country's ongoing efforts to combat financial crimes. This comprehensive legislation establishes the Financial Crimes Commission (the Commission) as the principal agency responsible for detecting, investigating, and prosecuting various financial crimes, including corruption, money laundering, fraud, and drug financing. This E-Alert discusses the key highlights and benefits of this Act and emphasises its importance in strengthening the fight of Mauritius against financial crimes.
Fund Finance Laws and Regulations 2025 – Mauritius
The fund finance market has been on an upward trajectory over the past decade, and 2024 is poised to be no different. With an evolving landscape facilitated by a greater understanding and acceptance of fund finance products, coupled with increasing investor confidence, the sector looks primed for robust growth. With the global economic landscape continuing to evolve amidst various challenges and opportunities, the fund finance sector is witnessing transformations and innovative developments that are reshaping the way funds secure financing for their operations and investments.
Directors' Duties in the face of insolvency
The duties of directors in relation to companies in Mauritius are laid out under the Companies Act 2001 (‘Companies Act’) and more specifically under Section 143 which sets out in detail that directors have a duty to act in good faith and in the best interests of the company on which they are appointed.
Maximising Efficiency in Fund Termination Through Liquidating Trusts in Mauritius
When it comes to terminating a fund licensed under the laws of Mauritius (Company), one of the key responsibilities of the investment manager is strategizing the best approach for disposing of the Company’s securities and assets. This strategy should not only ensure the Company’s liabilities are met but also aim to maximise returns for investors and creditors. An effective method for achieving these goals is by utilising a ‘liquidating trust’ which in effect is a trust created under the Trusts Act 2001.
Regulation of Moneylending in Mauritius
Moneylending is a crucial credit device in the world of financial services which plays a significant role in supporting economic growth and development. However, since at the outset, there were exploitative tendencies of lenders imposing stringent and oppressive terms on desperate borrowers, it was essential to establish an effective regulatory framework to sufficiently protect the borrowers from abuses.
Receivership: an enforcement mechanism for lenders
In a world of business, unforeseen circumstances can often arise that lead a company to financial distress or near insolvency. During such times, the appointment of a receiver is a common legal remedy that serves to protect the interests of lenders.
Statutory Demands - a Review of Recent Decisions
INSOLVENCY - The bankruptcy division of Mauritian Supreme Court re-affirms the test to determine the existence of a substantial and genuine dispute when setting aside a statutory demand. In this article, we review the recent determinations of the Bankruptcy Division of the Supreme Court of Mauritius (Bankruptcy Division) in which it re-affirmed the tests to determine an application to set aside a statutory demand under section 181 of the Insolvency Act 2009 (‘Insolvency Act’).
Data Protection Law now in force in Seychelles
In a significant move to safeguard the privacy and security of its citizens' personal information, Seychelles introduced the new Data Protection Act, 2023 (DPA) in December 2023, which is now in force. The DPA repeals the Data Protection Act 2003 which was enacted but never implemented in practice.
Derivative Action: A shareholder’s remedy to protect the interests of the Company
Generally, when there is a wrongdoing committed against a company, it is the company itself which acts. The decision to initiate proceedings rests with the directors and not the shareholders. The latter are normally precluded from initiating proceedings on behalf of the company and the courts are rarely inclined to intervene into the management of a company. However, there are instances where certain specified types of wrong are committed by the directors against the interests of the company and in breach of their fiduciary duties, which can allow shareholders to have recourse to the Court on behalf of the company. Such an action is known as a derivative action and has as its principal objective to protect the interests of the company.
Disciplinary Committees and the requirement of fairness and impartiality
Every company should ensure that it has established in its internal policies and procedures, a fair and impartial disciplinary procedure in line with the rules of natural justice. The benefit this has is that employees feel secure, respected, remain productive and trust the company in the event something goes wrong; and things do go wrong sometimes. It is only then that the company is critically assessed by its employees who are inevitably watching what treatment is meted out against their fellow colleague.
Smile - you are on (secret) camera
This article discusses the recent approach of the Cour de Cassation in France on rules of evidence in civil proceedings. In a recent ruling¹ relating to the dismissal of an employee for serious misconduct, the Cour de Cassation has reiterated the principle that evidence obtained unfairly is admissible in civil proceedings. This ruling confirms the approach adopted in a previous ruling dated 22 December 2023² , delivered by the Cour de cassation. It has also provided clarity on the conditions for admissibility of such evidence before the French courts.
Balgobin M. L. v. Maubank Ltd & Anor 2024 SCJ 145 - Case Summary
The Court of Civil Appeal (CCA) delivered an interesting judgment on the adequacy of affidavit evidence when making a bankruptcy order. The CCA, acting solely on the basis of affidavit evidence, upheld an order of the Bankruptcy Court adjudging the appellant (Mr Balgobin) bankrupt pursuant to Section 8 of the Insolvency Act.
Absence of assets in Mauritius – not a bar to the recognition and enforcement of foreign judgment
On 12 April 2024, the Mauritian Supreme Court confirmed in Hobler v Harker 2024 SCJ 159, that an application to recognize and enforce a foreign judgment by way of exequatur under the Mauritian Code of Civil Procedure would not be defeated by reason of an absence of assets in Mauritius on the part of the party against whom the foreign judgment is sought to be enforced. In so doing, the Supreme Court held that to award the application for exequatur in such circumstances would not be contrary to public order and that such a judgment would not be ‘academic’ i.e. of no practical effect.
Katra Holdings Ltd v Standard Chartered Bank (Mauritius) Ltd [2024] UKPC 8 - case summary
The Privy Council set aside an appeal challenging a winding up order of a Mauritian company, Katra Holdings Ltd (the Company), and the judgment of the Supreme Court (Civil Appeal Division) upholding that order.
The JCPC reaffirmed the exception to the bank secrecy rule
Further to the oral judgment of the Judicial Committee of the Privy Council (JCPC) on 06 July 2023 as summarised here (The JCPC Overrules The Judgement Of The Supreme Court Of Mauritius In Stanford Asset Holding Limited V Afrasia Bank Limited And Grants Disclosure Order | Appleby (applebyglobal.com)), the JCPC has, on 10 October 2023, stated its reasons for granting a disclosure order in the case of Stanford Asset Holding Limited v/s Afrasia Bank Limited 2023 UKPC 35.
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Maritime Due Diligence: Mauritius at crossroads
The year 2025 has witnessed a wave of revocations of Authorised Companies’ Licenses – more than 25 - by the Financial Services Commission (FSC) in Mauritius, pursuant to section 74(5) of the Financial Services Act.
Enforcing Integrity: The UK’s Legal Arsenal Against Market Abuse
The legal concept of market abuse and the twin concept of upholding market integrity are not new as these were prevalent since the 17th century ¹. As a matter of fact, there is a belief that insider dealing was the root cause of demise of the South Sea Company in the 18th century.
Dual Remedies Afforded against the Granting of Injunctions
Actis Consumer Grooming Products Ltd v Super-Max Mauritius [2025 SCJ 388]
The Mauritian National Budget 2025/2026 - From abyss to prosperity: Rebuilding the bridge to future
On 05 June 2025, Dr Navinchandra Ramgoolam GCSK, FRCP, Prime Minister of Mauritius, in his capacity as Minister of Finance (Minister of Finance) tabled the National Budget for the fiscal year 2025-2026 under the theme “From Abyss to Prosperity: Rebuilding the Bridge to the Future”.
Mauritius as an Ideal Seat for Arbitration
In one of its recent determinations, the Mauritian Supreme Court re-affirmed a line of decisions which confirmed its support to arbitration, whether international or domestic. These determinations reflect its understanding of the needs of business community, characterised by a marked choice to resolve disputes through a private mechanism to allow existing business relationships to thrive.
Insider Dealing: A Review of the Treatment in Mauritius, EU and US Federal law
A review of the treatment in Mauritius, the United States and the European Union of the offence of insider trading confirms the contrasting approaches which these jurisdictions have adopted on the issue even though all three jurisdictions share two fundamental concerns namely, (i) the prohibition on an insider to take an unfair advantage by reason of information which he has obtained to the detriment of third parties who are unaware of such information and, (ii) the protection of the integrity of financial markets and investor confidence ¹.
Professional emails are personal data
Case Commentary – France, Cour de cassation, 18 June 2025, 23-19.022 Professional emails are personal data.
Are our Courts tilting towards procedural flexibility?
Case Commentary: R.K.G FRUITS CO LTD v MAERSK (MAURITIUS) LIMITED 2025 SCJ 220. In a significant decision reaffirming the principle that procedural technicalities should not override substantive justice, the Court of Civil Appeal allowed an appeal overturning an interlocutory judgment of the Bankruptcy Division that had dismissed an application to set aside a statutory demand on the basis of a contested board resolution.
Is Cryptocurrency security - the Mauritian and USA perspectives?
As any of the emerging technologies, cryptocurrency has been disruptive to the market and has challenged regulators globally. Unsurprisingly, it has been commented that “a little more than a decade ago, cryptocurrencies were essentially an academic concept. The idea seemed far-fetched to most people. But that all changed in 2009 with the creation of Bitcoin …/… [today] the world’s cryptocurrency market is worth more than USD 3 trillion …/… there’s no question that crypto is here to stay, and it will undoubtedly continue to disrupt countless industries ”.
International Women’s Day 2025 roundtable: Rights. Equality. Empowerment.
As we recognise International Women’s Day 2025, we are reminded that gender equality is not just a vision – it’s a call to action.