COMPANIES – SHAREHOLDING REDEMPTION – VALIDITY OF ASSIGNMENT OF REDEEMED SHAREHOLDING – CONSIDERATION OF REDEMPTION AS DEBT OR INTEREST IN SHARES
In this matter the Court considered whether a redeemed shareholding was a debt or an interest in shares and determined the resulting entitlement of the redeemed Shareholder’s assignee, Origami (the “Plaintiff”). The Defendants were a Cayman master fund, its Cayman feeder fund and their Delaware investment manager. Monies (in the amount of US$4.3 million) held back from a redemption were being claimed by the Plaintiff, to whom the interest in the redemption had been assigned. The Defendants argued that the monies held back were not due. The Court considered both the validity of the assignment to the Plaintiff and whether the Plaintiff had standing to bring proceedings as the shareholder’s assignee.