MAURITIUS: An Introduction to Corporate/Commercial

Adaptations During and After the Pandemic 

COVID-19 was declared a global pandemic almost three years ago. It brought about unprecedented changes to our way of life, and the legal profession was not immune to its impact. Despite draconian measures, Mauritius faced two very strict lockdown periods. Vaccines were eventually the solution, as was the case for most of the world. During the pandemic, as in other jurisdictions, Mauritius saw an increase in the use of remote hearings as a partial solution to the issues of access to justice.

Things have now more or less returned to normal. With hindsight, however, it is clear that the pandemic caused the legal profession to adapt in the face of adversity.

There is today greater reliance on technology in relation to the practice of law, whether simply as a means of communication (eg, VoIP or videotelephony), recognition of the use of electronic signatures or in the use of AI. The latter is used, for example, in relation to some areas of legal practice management. The use of AI is still being developed, however, and it is likely to be subject to more regulation in the future.

In terms of economic measures, the Mauritian government continues to lend its support to local entrepreneurs and small and medium enterprises, to help them overcome and survive the financial and economic repercussions of the pandemic. The government therefore introduced, as part of its Budget Speech for 2023–2024, a number of schemes, including interest-free loan schemes and COVID-19 special support schemes, which will be in place up to June 2024.

The tourism industry, one of the largest pillars of the Mauritian economy, has enjoyed a very speedy recovery after the drastic impact that the pandemic and two lockdowns had on the arrival of tourists in the country. By mid-2023, the number of tourists had already reached 1.2 million.

It was also announced that the levels of personal taxation were going to be lowered through removal of the solidarity levy. Collective investment schemes and closed-end funds are also now allowed to claim a 95% exemption (instead of 80%) on foreign interest income.

Changes in the Finance Sector 

The financial services sector was one of the areas of focus of the 2023–2024 Budget, being the second-largest contributor to the country’s GDP. In the government’s endeavour to remain on a par with international standards and best practices, a new set of legislative amendments was due to be introduced. These intended amendments were developed into a new piece of legislation entitled the Financial Crimes Commission Act, which was passed on 21 December 2023. It provides for the establishment of a Financial Crimes Commission aimed at being the principal agency in Mauritius to detect, investigate and prosecute financial crimes such as corruption, money laundering, fraud, the financing of drug dealing and any other corresponding ancillary offences.

The Financial Crimes Commission will take over the functions and powers of existing institutions such as the Independent Commission Against Corruption, the Asset Recovery Investigation Division of the Financial Intelligence Unit, as well as the Integrity Reporting Services Agency. The objective of bringing these institutions together is to enable better co-ordination in the fight against money laundering and financial crime, while bolstering the international reputation of Mauritius and assisting in better positioning Mauritius as an international financial centre, especially since its removal from the Financial Action Task Force (FATF) Grey List and from the EU High-Risk Country list. It is expected that the substantial powers of this new government agency will be tested before the courts.

The insolvency regime in Mauritius is supported by a growing rescue culture. Last year saw a number of companies make use of the administration regime under the Insolvency Act in order to restructure their businesses.

Judicial Developments 

There were also some significant judgments from the Judicial Committee of the Privy Council. One of these was Stanford Asset Holdings Ltd v Afrasia Bank Limited (2023) UKPC 35. The issue the Board had to determine was whether a victim of fraud is entitled to a court order compelling a third party, a bank, to disclose information relating to the fraud, despite the obligation of confidentiality imposed on banks under Section 64 of the Banking Act. The Board concluded that it was indeed an appropriate and proportionate response in the circumstances of the case for the appellants to seek the order, and this was necessary in order for justice to be done. The appeal was allowed and the disclosure order sought by the appellants was granted as a matter of urgency before the full judgment was eventually published two months later. The availability of Norwich Pharmacal relief in the jurisdiction, in relation to banks, is especially important in ensuring that victims of fraud are adequately protected.

Another significant judgment delivered by the Judicial Committee of the Privy Council was in Surendra Dayal v Pravind Kumar Jugnauth (2023) UKPC 37. This was an appeal arising out of the last remaining election petition from the general elections held in 2019. The appellant, who unsuccessfully ran for a parliamentary seat in the same constituency as the elected prime minister, sought to challenge the election of the three elected candidates on the grounds of alleged bribery and treating for the purpose of Section 64 of the Representation of the People Act. The Supreme Court dismissed the petition on all grounds. On appeal to the Judicial Committee of the Privy Council, the Board found that the Supreme Court was right to conclude that the respondents were not guilty of bribery or treating, and that their actions constituted normal electoral campaigning. The Board therefore dismissed the petition on all grounds.

Mauritius has always been a jurisdiction that allows relatively easy access to justice and where costs orders are not a deterrent to would-be litigants. As a result, the number of cases (many of which are increasingly complex) entered each year before the courts remains substantial. In 2023, three new judges were appointed to the Supreme Court, with another three being appointed at the start of 2024, increasing the total number of judges at the level of the Mauritius Supreme Court. This is seen as part of the efforts made to improve on the speed with which matters are handled and determined by the Supreme Court.