Web alert: 1971 IOPC Fund votes to wind itself up

In the IOPC Fund meetings held last week, the Administrative Council of the 1971 IOPC Fund has voted in favour of winding up the 1971 Fund by a majority of 29 to 14, with three states abstaining. 
 
Member states present were asked to vote whether or not they “agree that, with effect from expiry of the last day of the financial year of 2014 (taken as 31 December 2014), the 1971 Fund should be dissolved and its legal personality cease to exist.”
 
As a result, the 1971 Fund will no longer exist after this year.      This vote followed the High Court decision in the Nissos Amorgos case which upheld the Fund’s challenge to a freezing injunction granted earlier this year to prevent the Fund from dissipating its assets.      The International Group did not support the 1971 Fund’s moves to wind up, given the provision in Article 44 of the 1971 Fund Convention that the Fund cannot be dissolved until it has fulfilled all its obligations.   The 1992 Fund and the Supplementary Fund remain in existence and will provide the framework for future compensation payments, however, this decision by the 1971 Fund throws into question the workability of the interim funding arrangement between the Clubs and the 1992 Fund in the future.