Outer Temple Chambers in first Abu Dhabi Global Markets case
The ADGM Court (Judge Sir Andrew Smith) handed down its first judgment in Afkar Capital Limited (C) v Fikry (D). C, an investment firm regulated by the FSRA, applied for an interim declaration that the minutes of a board meeting and resolutions made at the meeting purporting to appoint a new director and CEO were validly made. The ostensible purpose of the interim declaration was to persuade the regulatory authorities to approve the appointments. The application was made in reliance upon the ADGM companies Regulations 2015 (which closely follows the scheme of the 2006 act).
D, a director and then CEO of C who had attended the board meeting, challenged the accuracy of the minutes and the validity of the resolutions. He alleged he had been “ambushed” at the board meeting by the proposed new appointments. The Judge refused to make the interim declarations sought. The Judge held that D had a case that the appointments were voted for in circumstances where there was a conflict of interest under the Articles of the company. In so doing, he made some useful observations concerning the interim declaration jurisdiction, and the relationship between the Court and ADGM regulatory authorities. The claim will be heard at a substantive hearing in February 2018.
Farhaz Khan, instructed by Habib Al Mulla, Baker & McKenzie, successfully represented D.
Farhaz has an extensive commercial disputes, banking and financial services regulatory practice in the Middle East, with experience of acting in the DIFC both for and against major institutions.
Farhaz is ranked by Chambers & Partners 2018 as a leading barrister in five fields: Banking and Finance; Commercial Chancery; Commercial Dispute Resolution, Financial Services and Pensions.