On 27 October 2023, the Financial Action Task Force announced at its plenary in Paris that the Cayman Islands would be removed from its anti-money laundering “grey list” as the FATF has determined that the Cayman Islands AML regime now meets the international standard.
A landmark decision of the Singapore Court of Appeal in Ascentra Holdings, Inc. and Others v SPGK Pte Ltd has overturned the first instance decision of the Singapore High Court and confirmed that solvent official liquidations can be recognised as foreign main proceedings under Singapore’s adaptation of the UNCITRAL Model Law on Cross-Border Insolvency. In so deciding, the Singapore Court has declined to follow a decision of the English High Court which had held that a company’s insolvency was a prerequisite for recognition under the UNCITRAL Model Law on Cross-Border Insolvency.
In a judgment delivered on 6 October 2023, the Grand Court of the Cayman Islands dismissed an application by the joint voluntary liquidators of Port Link GP Ltd pursuant to section 124(1) of the Companies Act (2023 Revision) for an order that the liquidation continue under the supervision of the Court, and determined that receivers previously appointed to have conduct of litigation to which Port Link is a party should remain in office in that capacity.
On 30 August 2023 the Beneficial Ownership Transparency Bill, 2023 was gazetted. The Bill has been the subject of extensive consultation with industry stakeholders, members of the public, government partners, and international entities, particularly to ensure that the existing beneficial ownership regime in the Cayman Islands is aligned with current international standards.
In an eagerly awaited judgment of the Judicial Committee of the Privy Council (“JCPC”) delivered on 20 September 2023 in FamilyMart China Holding Co Ltd v Ting Chuan,[1] the JCPC addressed whether an arbitration agreement in a shareholders’ agreement prevents a party to that agreement from pursuing a petition to wind up the company which is the subject of the dispute.
In a significant decision for the Cayman Islands in In The Matter of HQP Corporation Ltd (in Official Liquidation) (FSD 190 of 2021 (DDJ)), the Grand Court has clarified that there is no bar to shareholders bringing claims for misrepresentation against a company in liquidation and, further, that such claims (if admitted) will rank as unsecured debts of the company.
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.