Duties of Directors of a Cayman company What are the duties of a Director of a Cayman Islands’ company? The constitutional documents of a Cayman Islands company, the Memorandum of Association and the Articles of Association (“Articles”), set out the governance rules and the powers of the Directors of the company. However, the Directors also owe fiduciary Read More

Cayman Economic Substance and Its Impact on Fund Managers Cayman Economic Substance and Its Impact on Fund Managers The Securities and Investment Business (Amendment) Law 2019 (the "SIB Amendment Law") and the Directors Registration and Licensing (Amendment) Law, 2019 were both passed by the Cayman Islands Government on 18th June 2018. Cayman Economic Substance and Its Impact on Fund Read More

Economic Substance requirements for Cayman Islands companies The Cayman Islands International Tax Co-operation (Economic Substance) Law, 2018 (the “Economic Substance Law”) came into effect on 1 January 2019. The Economic Substance Law will be implemented, including by further regulations and guidance to be provided, by the Cayman Islands Tax Information Authority (“TIA”). All international offshore financial centres Read More

What Guidance for Cayman Companies Undertaking an ICO? As at the date of this publication, there is still no specific regulation in the Cayman Islands addressing ICOs and blockchain technology. However, several of the existing laws and regulations are applicable to blockchain start-up companies and their pre-ICO and ICO operations. Also, a recent series of statements have been Read More

The benefits of Segregated Portfolio Companies for Investment Purposes Once registered under the Cayman Islands Companies Law, a segregated portfolio company (“SPC”) can operate segregated portfolios (“SPs”) with the benefit of statutory segregation of assets and liabilities between portfolios. The principal advantage of an SPC over a standard exempted company is to protect the assets of one portfolio from Read More

Foundation Companies can now be incorporated in the Cayman Islands With effect from 19 October 2017, it is possible to incorporate Foundation Companies in the Cayman Islands. The Foundation Companies Law, 2017 (the “Law”) allows for the formation and/or registration of a new Cayman Islands corporate vehicle: the Foundation Company. A Foundation Company will be governed by the Companies Law, Read More

Cayman Islands Limited Liability Companies The introduction of the Cayman Islands limited liability company (the "LLC") corporate structure in 2016 by the Limited Liability Companies Law, 2016 (the "LLC Law") has so far been proven attractive for general partner entities and other carried interest distribution vehicles. The LLC has the benefit of being (like a Read More

Introduction of Foundation Companies in the Cayman Islands The Cayman Islands government published the Foundation Companies Bill, 2016 in December 2016 to allow for the formation of a new Cayman Islands corporate vehicle: the foundation company. It is anticipated that the new Foundation Company structure will, among other things, (1) create a number of uses for private clients Read More

The Cayman Islands Beneficial Ownership Regime LEGAL UPDATE The introduction of a regime to register the beneficial owners of Cayman Islands’ companies and LLCs takes effect on 1 July 2017 Introduction In line with the transparency and compliance efforts that made the Cayman Islands one of the early adopters of the Common Reporting Standard (CRS) and Read More