For those that may have missed it, the Cayman Islands Court of Appeal (CICA) recently delivered an important decision in the case of Re China CVS (Cayman Islands) Holding Corp., which focussed on the question of arbitrability of shareholder petitions for the winding up of a company on the just and equitable ground.

In short, the CICA held that since the threshold question of whether to wind up a company on a just and equitable basis is to be determined by the Court alone, the subject-matter of such a petition is incapable of being determined by arbitration.

The decision provides important clarity on the appropriate forum for shareholder petitions on the just and equitable ground in circumstances where an agreement to arbitrate exists in the company’s governing documents, especially as such agreements are becoming increasingly common.