Which of the following correctly describes a Mareva Injunction?

A Mareva Injunction is a specific type of court order designed to freeze assets and prevent a party from dealing with them, particularly to stop the removal or disposal of those assets while a legal action is pending. This is crucial in situations where there is a risk that a defendant may attempt to dissipate or hide their assets to avoid fulfilling a potential judgment or verdict against them.

The function of a Mareva Injunction is to ensure that there is a remedy available should the claimant win their case, as it preserves the status quo until the matter is resolved in court. This form of injunction is not about compensating damages; rather, it specifically addresses the preservation of asset availability.

Additionally, it does not serve as a procedural guideline for default judgments nor does it expedite court cases; instead, its primary purpose is asset protection in the context of ongoing litigation. Therefore, the description of a Mareva Injunction as a court order to prevent a party from removing assets accurately captures its essential function in legal proceedings.