This briefing paper explains schemes of arrangement under Cayman Islands law. Under sections 86 and 87 of the Companies Law (2013 Revision) the Grand Court may sanction a compromise or arrangement between a company and its creditors or members or any class of them.
The new Exempted Limited Partnership Law, 2014 (the new “ELP Law”), which repeals and replaces the current law, is shortly expected to come into force in the Cayman Islands. The ELP Law recognises developments in commercial practice, clarifies certain matters in order to ensure consistency of advice and allows for greater contractual flexibility to accommodate developing trends in the formation, regulation and operation of exempted limited partnerships.
In a recent judgment, the Cayman Islands Court of Appeal has confirmed the scope of the jurisdiction of the Grand Court, under sections 241 and 242 of the Companies Law (2013 Revision) (the “Law”), to assist foreign liquidators and trustees of foreign companies and other entities in foreign bankruptcy proceedings in their jurisdiction of incorporation by reversing pre-liquidation transactions under transaction avoidance legislation.
In an unreported judgment in ICP Strategic Credit Income Master Fund Ltd. delivered on 4 April 2014, Mr Justice Jones has helpfully confirmed and clarified Cayman Islands law and procedure in respect of applications by liquidators for approval to (i) bring proceedings in the name of the company, (ii) enter into litigation funding agreements with litigation funders, and (iii) enter into contingency fee agreements with the liquidators’ lawyers.
The Privy Council gave its awaited judgment in Fairfield Sentry Limited (in liquidation) v Alfredo Migani and others [2014] UKPC 9, holding that certain documents issued by the fund’s administrator were binding certificates of the net asset value per share and redemption price, and that the fund’s claims to recover redemption payments on the ground of unjust enrichment failed since the redeeming shareholders received the amounts due under the governing documents.
Katherine Powell-Francis was recently admitted as an Attorney-at-Law in the Cayman Islands, after completing her articles with Campbells. Partner Shaun McCann presented her qualifications to Justice Williams in a Grand Court ceremony, which was attended by a large number of family, friends and colleagues.
In a recent article published in the February issue of South Square Digest, Ross McDonough and Guy Manning discuss recent case law in the Cayman Islands.
Corporate Disputes Magazine, Jan – Mar 2014: Mini Round Table on Investment Fund and Trust Disputes. Guy Manning, Partner, participated as a panellist.
Chosen expert panellists, including Ross McDonough, Campbells Partner and Head of Litigation, discuss key topics including the recently implemented Jackson Reforms, litigation funding and the advantages and disadvantages of alternative dispute resolution.
Campbells is pleased to announce the addition of two new attorneys to the firm’s growing investment funds practice. Susan Lock, formerly of Ogier, joins Campbells as a Partner, and Jonathan Law, formerly a Partner with Harneys, bring considerable experience to the firm.