|
|
|
|
|
|
| Port Company also prohibited from replacing DP World directors in joint venture company |
DUBAI, Sept 5, 2018 - (Media OutReach) - The High Court of England & Wales has granted an injunction restraining Djibouti's port company, Port de Djibouti S.A. (PDSA), from treating its joint venture shareholders' agreement with global trade enabler DP World as terminated. The High Court has further prohibited PDSA from removing directors of the Doraleh Container Terminal (DCT) joint venture company who were appointed by DP World pursuant to that agreement. PDSA is not to interfere with the management of DCT until further orders of the Court or the resolution of the dispute by a London-seated arbitration tribunal.
PDSA is owned in majority by the Government of Djibouti and its CEO is the Chairman of the Ports & Free Zones Authority of Djibouti. Hong Kong-based China Merchants is the minority shareholder in PDSA.
The High Court's order follows the unlawful attempt by PDSA to terminate the joint venture agreement with DP World and the calling of an extraordinary shareholders' meeting on 9 September by PDSA to replace DP World appointed directors of the DCT joint venture company. This is the third legal ruling in relation to the Doraleh Container Terminal following two previous decisions from the London Court of International Arbitration (LCIA), all of them in favour of DP World. It recognises that although PDSA is the majority shareholder of the DCT joint venture company, it is DP World that has management control of the company, in accordance with the parties' legally binding contracts.
The new ruling against PDSA, issued by the Court without PDSA's participation, makes clear that PDSA:
- Cannot act as if the joint venture agreement with DP World has been terminated
- Cannot appoint new directors or remove DP World's nominated directors without its consent
- Cannot cause the DCT joint venture company to act on the "Reserved Matters" without DP World's consent
- Cannot instruct or cause DCT to give instructions to Standard Chartered Bank in London to transfer funds to Djibouti
If PDSA disobeys the Court's order and seeks to replace DP World nominated directors of DCT on 9 September, it may be in contempt of court and face a fine or the seizure of its assets and its officers and directors may be imprisoned.
The Court has ordered PDSA to present its defence at another hearing on 14 September.
Meanwhile, DP World is notifying Standard Chartered Bank so that the bank will reject any instructions that may be sent to them after the 9 September meeting. China Merchants, who have been given operational control of the Djibouti Freezone in breach of DP World's exclusivity rights, will also be informed given its minority shareholding in PDSA.
Media Contact:
Government of Dubai
+9714 38 33 222
Topic: Press release summary
Source: Government of Dubai
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2025 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
|
|
|
|
|
|
| |
Latest Press Releases
A New Chapter Begins! CMS Achieves Secondary Listing on the Singapore Exchange Main Board Today 
July 16, 2025 15:00 HKT/SGT
|
|
|
U.S. Polo Assn. Celebrates Seventh Year Supporting the 2025 Outsourcing Inc. Royal Charity Polo Cup
July 16, 2025 15:00 HKT/SGT
|
|
|
Ocean One Seizing Business Opportunities with Main Board Listing Application
July 16, 2025 14:26 HKT/SGT
|
|
|
AATec Medical and Northway Biotech Announce Partnership to Develop Industrial Production Process for ATL-105 Targeting Lung Disease
July 16, 2025 14:20 HKT/SGT
|
|
|
Anime Tokyo Station: Mobile Suit Gundam GQuuuuuuX -Beginning- Special Exhibition - New Designs Added for Admission Bonus Illustration Cards
Wednesday, July 16, 2025 10:00:00 AM
|
|
|
maxWin Sports Makes It Debut in Motorsports with EBM-GIGA Racing Team
July 16, 2025 08:00 HKT/SGT
|
|
|
Formerra to Supply Foster Medical Compounds Across the Americas
July 15, 2025 22:50 HKT/SGT
|
|
|
Buy International Homes at the Global Property Expo, Singapore
July 15, 2025 20:06 HKT/SGT
|
|
|
ONERHT Foundation Announces 8th edition of GAIL Forum which will focus on Green Leadership in ASEAN
July 15, 2025 13:00 HKT/SGT
|
|
|
PCG Collaborates with Big Boss Taxi and STAY BAR to Usher in a Cashless Era
July 15, 2025 12:30 HKT/SGT
|
|
|
|
|
More Press release >> |
|
|
|
