CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Mauritius-Based Forex Firm Facing Liquidation

Mauritius-Based Forex Firm Facing Liquidation

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

21 April 2005


Following the announcement late last month that Mauritius's Financial Services Commission had suspended the Category 1 Global Business Licence of Leaderguard Spot Forex Limited with immediate effect on receiving information that the company had been rendered insolvent by trading losses amounting to around 80% of the funds under management, it emerged recently that the company has been put under judicial administration.

Leaderguard Spot Forex was licensed as an asset management company and was using its sister company, Leaderguard Securities (Pty), as a marketing arm to develop a wide client base in South Africa, Botswana and Swaziland, primarily through a network of investment consultants and brokers.

According to a statement released by the FSC:

"Pursuant to a direction given by the Financial Services Commission on Wednesday 30th March 2005, an application was made on 1 April 2005 to the Bankruptcy Division of the Supreme Court of Mauritius to put Leaderguard Spot Forex under judicial administration. The Court has granted the application and appointed Mr Ziyad Bundhun, Chartered Accountant, as Manager of the Company with immediate effect under section 188 of the Companies Act 1984. Mr Bundhun has agreed to the appointment."

"The Court has ordered all present directors of the Company to cease to exercise all powers as directors. The Manager is to assume control on the assets, operations and accounts of the Company, and to protect its assets for the creditors and investing clients. He is required to report to the Court on the management of the Company. The Manager has also been empowered to work in conjunction with Towergate S.A. (Pty), a firm of consultants based in South Africa, on a proposal for a compromise which is to be submitted to creditors and investing clients for their consideration."

"In the meantime, the Manager will continue to operate the open positions which the Company holds on a number of trades in the best interests of the investing clients."

The statement went on to reveal that:

"At the instance of the Commission, Messrs Jacobus Venter and Warren Luyt, who are the present directors of the Company, and Mr Renso du Plessis, the Risk Manager of the Company, have given an undertaking to the Court not to leave Mauritius without the authorisation of the Court. They have also pledged to provide all assistance and information to the Manager and to make themselves available to the Commission for the purpose of its investigation. Breach of an undertaking to the Court is tantamount to contempt of court and may render a guilty party liable to imprisonment. Mr Stephanus Pretorius, another director of the Company, who is presently in South Africa, will be required to enter into a similar undertaking on his return to Mauritius."


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »