The government of the Cayman Islands recently published a number of bills and laws relating to corporate governance, regulation and administration. These include the following changes:
The Limited Liability Companies Bill, 2015
The Cayman Islands published a bill for a new law on 18 December 2015 to allow the formation of a registration of a new type of vehicle – a Cayman Islands limited liability company (an "LLC").
This new vehicle will be very similar to a Delaware limited liability company and contain a number of features that make it more flexible than a Cayman Islands exempted company. The Cayman LLC will be of interest to promoters of investment funds and their service providers and assist the Cayman Islands enhance its position as a leading offshore financial centre.
It is expected that the LLC Bill will be implemented into law in June 2016.
Please click here for a copy of the Limited Liability Companies Bill, 2015.
The Companies (Amendment) Law 2015 (the 'Amendment Law')
The Amendment Law came into effect on 2 November 2015. The purpose is to extend the period of filing details of directors and officers with the Registrar before a penalty is levied and reduce the fees for late filings. It is therefore good news for users of Cayman vehicles.
The following is now in effect:
- Companies will have sixty (60) days to notify the Registrar of any changes in directors and officers (increased from 30 days);
- The maximum penalty for a breach of this obligation is reduced from CI$1,500 (US$1,830) per appointment to CI$500 (US$610) per company;
- When the same breach occurs to five (5) or more companies, the aggregated penalty will be capped at CI$2,500 (US$3,050).
Where the Registrar is satisfied that a breach was knowingly and wilfully authorised or permitted, every company to which the breach relates will incur an additional penalty of CI$1,000 (US$1,220) and every director and officer of the company to which the breach relates will incur an additional penalty of CI$1,000 (US$1,220) and a further penalty of CI$100 (US$122) for every day that the breach continues.
Please click here for a copy of the Cayman Companies (Amendment) Law, 2015.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.