Grand Cayman, 20 March 2024 – The Companies (Amendment) Act, 2024 and the Merchant Shipping Act, 2024 have been published following Her Excellency the Governor Jane Owen's assent to the legislation.
The Merchant Shipping Act, 2024 is in effect while the Companies (Amendment) Act, 2024 will be in effect following a commencement Order in due course.
The Companies (Amendment) Act, 2024 is designed to enhance financial services by introducing these commercial enhancements.
- a new procedure for reducing share capital in certain circumstances, to lower costs for companies and reduce the time involved for the process;
- allowing limited liability and foundation companies to convert to exempted companies, to provide flexibility for Cayman structures dealing with changes in circumstances; and
- allowing re-registration of exempted companies as ordinary companies. Upon re-registration, these ordinary companies will be subject to the resident (also called local) companies regime.
The Merchant Shipping Act, 2024, repeals and replaces the Merchant Shipping Act (2021 Revision). It brings the Cayman Islands' maritime legislative framework in line with current International standards and requirements by:
- updating terminology in line with the terminology of the global maritime sector;
- updating local legislation to align with global maritime legislation;
- mandating a certain basic standard of treatment for personnel on Cayman-flagged vessels. This includes legalising seafarers' rights and responsibilities, including the right to a written contract and to free food and water; and
- outlining the process to be used by the Shipping Master when determining a wage dispute.
Deputy Premier and Minister for Financial Services and Commerce, the Hon. André Ebanks, tabled both pieces of legislation in Parliament on 27 February.
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