Meaning
An equitable remedy granted by an offshore court that restrains a defendant from disposing of or dissipating assets located within that jurisdiction. A Mareva injunction offshore is commonly used in tax havens and financial centres to lock down holding company shares or bank accounts during a global lawsuit. This legal tool protects the claimant from finding an empty shell company at the end of a successful trial.
Injunctions Application
Injunctions can be tailored to target specific offshore entities and their directors to ensure complete compliance. This focus prevents the transfer of assets through complex corporate webs.
Applicants Obligation
Applicants must demonstrate a strong prima facie case and prove that assets are likely to be dissipated. When seeking a Mareva injunction offshore, the claimant must also provide a cross-undertaking in damages to cover any losses caused by the freeze. This financial obligation ensures that the remedy is only sought in genuine cases of fraud or evasion.
It balances the rights of the creditor with those of the asset holder.
Court Directives
Court orders often include a directive requiring the defendant to reveal the location and value of all local assets. This information assists the claimant in policing the freeze.
