In a judgment delivered on 25 May 2023, the Grand Court of the Cayman Islands ordered the joinder of two plaintiff limited partners of The Port Fund L.P. as defendants to a crossclaim which had been filed against the general partner of the Fund, and appointed interim receivers over the GP to manage litigation related to the GP and the Fund, notwithstanding the GP was in voluntary liquidation.
In April 2023, the Cayman Islands Monetary Authority issued a new Statement of Guidance on Corporate Governance for Mutual Funds and Private Funds and Rule on Corporate Governance for Regulated Entities. The Rule and SOG will replace the existing corporate governance regulatory measures.
This advisory discusses the recent judgment of the Cayman Islands Court of Appeal in Kuwait Ports Authority & Ors v. Port Link GP Ltd & Ors, clarifying the test for limited partners in a Cayman Islands exempted limited partnership to bring derivative claims for and on behalf of the ELP pursuant to section 33(3) of the Exempted Limited Partnership Act (2021 Revision).
Following our client advisory issued on 11 January 2023, the BVI Virtual Assets Service Providers Act, 2022 (the “VASP Act”) will come into force on 1 February 2023.
BVI has become one of the leading jurisdictions for the establishment of virtual asset legal structures over recent years, and the enactment of the VASP Act demonstrates the BVI’s commitment to the virtual asset sector.
This advisory discusses a recent decision of Mr Justice Doyle, who has provided welcome guidance in relation to the scope and extent of sanction applications brought by official liquidators.
CIMA has recently issued an updated rule and regulatory procedure in respect of the cancellation of licenses or certificates of registration for regulated mutual funds and registered private funds respectively.
The Supreme Court in England in BTI v Sequana [2022] UKSC 25 has clarified when directors owe duties to the company that should take into account creditors’ interests. The decision will be highly persuasive in the Cayman Islands on directors’ duties.
The issue which the General Licence addresses is where a Designated Person owns more than 50{92e447aa5ae4509d19f58c4a2ed7ec0dbb286610ae15b33d823e9409689b2d4a} of an investment fund which has hitherto meant that the fund is paralysed and all of its assets are frozen. This provides relief from aspects of the financial sanctions imposed in the Cayman Islands by the Russia (Sanctions) (Overseas Territories) Order 2020 (the “Order”).
With effect from 1 December 2022, all BVI entities that fall within the definition of a virtual asset service provider (a “VASP”), as set out in the recently amended BVI Anti-Money Laundering Regulations (the “AML Regulations”) and Anti-Money Laundering and Terrorist Financing Codes of Practice (the “Code”), will be required to comply in full with BVI anti-money laundering, counter-terrorist financing and anti-proliferation finance legislation (together the “BVI AML Laws”).