However one of them, a Promissory Note issued by the Saudi company, was expressed to be governed by the laws of Saudi Arabia.įollowing a default in payments under the certificates it became apparent that the Promissory Note had not been properly executed. It was effected by an extensive suite of transaction documents (the Transaction Documents) most of which were expressed to be governed by English law. This case 1 concerned a new issue of sukuk certificates to raise money for a company registered in Saudi Arabia. A number of current market practices may be revisited as a result of this judgment and there may now be a period during which new practices evolve in response to its implications. This judgment raises many questions for banks and other parties actively involved in arranging new issues of securities. Although the case concerned an Islamic financing transaction, widely known as a sukuk, the terms of the judgment suggest that this duty of care exists in the vast majority of new issues of securities where English law is relevant. ![]() Restructuring, Special Situations and InsolvencyĪ ground-breaking judgment of the High Court has established that a duty of care is owed to investors by a bank which has assisted a borrower to arrange a publicly listed capital market issue. ![]() Antitrust, Regulation and Foreign Investment.
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