IN THE MATTER OF CHORLEY COMPANY LIMITED (IN LIQUIDATION) AND IN THE MATTER OF THE COMPANIES ACT 1981

(1994) 3 Re LR 232

Bermuda Supreme Court

Before Judge Vincent W Heerabux

Liquidation - Bermuda - Illegality - Reinsurance contracts, to which Bermuda company in liquidation was party, governed by English law, prohibited by statute and illegal and void ab initio - Whether unenforceability of reinsurance contracts illegal under proper law contrary to Bermuda public policy - Whether law offended Bermuda’s public policy notion of morality in relation to essential insurance interests of community - Whether enforcing illegal reinsurance contracts in Bermuda by admission to proof would risk international comity being jeopardised.