Meaning
Formal validation by a local court of a foreign order commanding a specific action requires the domestic judiciary to adopt the foreign instruction as its own. This process of mandatory injunction recognition is most frequently used when a foreign court orders a party to execute a share transfer or return company records. Without this domestic recognition, the foreign order is legally powerless to compel action within the host country’s borders.
Enforcement Request
Applicants seeking to register a foreign coercive order must file a separate action in the domestic court to initiate the recognition process. The local court will evaluate whether the foreign proceedings were fair, whether the foreign court had jurisdiction over the defendant, and whether the order is clear enough to be executed. If these conditions are met, the court grants mandatory injunction recognition, converting the foreign directive into a domestic injunction.
This step gives the applicant the right to demand performance from the defendant under threat of local penalties. The domestic registry can then enforce the order.
Judicial Command
Because a mandatory injunction forces a party to take positive action, courts exercise greater caution than they do with negative injunctions that simply freeze assets. They must ensure that the ordered act is physically and legally possible to perform. This scrutiny protects the defendant from impossible judicial demands.
Register Amendment
Once the domestic court issues the recognized injunction, the company’s registered agent must execute the transfer on the register of members. Failure to comply with the order leads to immediate fines or imprisonment for the company’s directors. This execution finalizes the transfer of ownership.
