The question of whether an individual has the mental capacity to exercise his or her legal rights or powers is one fraught with difficulties, and inevitably subject to great debate. In the recent decision of CI Trustees Ltd -v- RDK and GMB1, the Grand Court of the Cayman Islands (the “Court”) was asked to consider whether or not the settlor of a Cayman Islands trust had capacity to exercise her power to amend the trust deed to change the sole beneficiary of the trust.

This sixth issue is special in that it is published in anticipation of the International Bar Association’s Latin American Regional Forum in Mexico City and includes a diverse range of articles reflective of this region. A piece on the Oi restructuring shows the continuing importance of bankruptcy law in Brazil—and the complexity and depth that cases like Oi have produced.

In In the matter of Trina Solar Limited1 (“Trina Solar”) the Grand Court of the Cayman Islands refused an interlocutory application, made by a group of dissenting shareholders (the “Dissenters”) of a Cayman Islands company, for worldwide freezing orders over the assets of the company pending the outcome of statutory fair value appraisal proceedings. Having been declined this relief by the Grand Court, the Dissenters took their case on to the Court of Appeal of the Cayman Islands.

The recent revisions to the anti-money laundering laws particularly impact all persons carrying out a “relevant financial business” (“RFB”) as defined under the Proceeds of Crime Law (2017 Revision) (the “Law”). An important change in the Law is the expansion of the definition of RFB to include two new categories of activity: (1) “otherwise investing, administering or managing funds or money on behalf of other persons” (which would include, for example, venture capital and private equity funds); and (2) “underwriting and placement of life insurance and other investment related insurance”.

This alert is intended to aid businesses that may have obligations to report information under the Tax Information Authority (International Tax Compliance) (Country-by-Country Reporting) Regulations, 2017 (“CbCR Regulations”), which were issued by the Cayman Islands on 15 December 2017 as part of its ongoing commitment to international tax transparency. The Cayman Islands is party to the OECD Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports and the Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”).

In the matter of Pacific Harbor Asia Fund I, Ltd (In Official Liquidation) (the “Company”) the Grand Court appointed joint official liquidators (“JOL”) from different firms due to the differing opinions of various stakeholders as to the identity of the liquidators. The Grand Court directed the JOLs to endeavour to agree a protocol to govern their respective responsibilities and provide for co-operation between them.

In late 2008, RMF Market Neutral Strategies (Master) Limited (“RMF”) sought to cash in its investments in DD Growth Premium 2X Fund (In Official Liquidation) (the “Company”), a feeder fund incorporated in the Cayman Islands, by exercising its right to have its shares in the Company redeemed. In response, the Company paid US$23 million to RMF (less than 40% owed to RMF by way of redemption) before running out of money and being wound up.

Conyers Dill & Pearman (“Conyers”) has successfully incorporated The Conyers Dill & Pearman Foundation, being one of the first Cayman Foundation Companies to be established and incorporated under the Foundation Companies Law (“the Law”), which came into force on 18 October 2017. A leader in Corporate and Private Client services, Conyers is well positioned to provide advice and assistance in respect of the incorporation and administration of Cayman Foundations and their application as flexible structuring tools for private clients or in commercial securitization transactions.

The Foundation Companies Law (the "Law”) was passed by the Legislative Assembly in March 2017, and has now been brought fully into effect from 18 October 2017. As confirmed in our previous update, a foundation company may be established as a new form of Cayman company and will share many of its features with regular exempted Cayman companies, save that it will be prohibited from paying dividends to its members.

The Cayman Islands has recently seen the passing of a number of laws to improve the Island’s regulatory framework in support of the international financial system’s integrity.