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A liquidating trust is a tax-efficient vehicle to liquidate assets because income of a qualifying liquidating trust is only taxed as income at the beneficiary level.

However, to receive this favorable tax treatment, a trust must qualify as a liquidating trust.

Though the courts in Cyprus have power to grant such orders, such a decision for an injunction is not taken lightly. So, as long as the courts in Cyprus are satisfied that the plaintiff is entitled to relief and that there is a high risk of the assets being disposed of, it will issue the Mareva Injunction, now capable of crossing borders into other jurisdictions, in order to protect the plaintiff and ensure justice is served.

The Court assesses various criteria beforehand; it must be fully satisfied that the plaintiff will 'probably' be entitled to relied and that unless an injunction is put into place, justice may not be served now or at a later date; the plaintiff must prove that it is their strong belief that without the injunction, the risks of the assets being removed or dissipated before the judgment has been served is high; and the plaintiff must also give an undertaking as to damages. The Supreme Court in Cyprus looked carefully into this limitation of jurisdiction and analyzed it in the case of Seamark Consultancy Services Ltd v Joseph P. Zeidman, Co-Trustees of the Aremisoft Liquidating Trust C. There is no doubt that the UAE has been steadily establishing itself as a global arbitration centre by developing the Dubai International Arbitration Centre ("DIAC") , Dubai International Financial Centre London Court of International Arbitration ("DIFCLCIA") and the Abu Dhabi Commercial Conciliation and Arbitration Centre amongst others.

Ambridge’s Liquidating Trustees Liability Insurance policy has been developed to address the unique exposures facing liquidating trusts and their trustees.The Mareva principle stems from the decision made in the case of Mareva Compania Naviera S. If it appears that the debt is due and owing – and there is a danger that the debtor may dispose of his assets so as to defeat it before judgment.The Court has jurisdiction in a proper case to grant an interlocutory judgment so as to prevent him disposing of those assets”. Aremis Soft Corporation ("Aremis Soft" or "the Company") was a software company, incorporated in Delaware in 1997, that purported to develop, market, implement, and support software applications for mid-sized corporations in the manufacturing, healthcare, hospitality and construction industries. Much of the following account is drawn from the complaint, whose well-pleaded factual allegations are taken as true on this motion.




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