In a comprehensive judgment published on 23 April 2020, the Cayman Islands Court of Appeal, comprising Moses JA, Martin JA and Rix JA, has provided welcome clarification of the interplay between a contractual agreement to arbitrate disputes arising between shareholders and the exclusive jurisdiction of the Court to determine whether a company should be wound up on the just and equitable ground.

The Cayman Islands Court of Appeal has provided much needed clarification of the test for validating certain transactions by companies that are subject to a winding up petition, pursuant to section 99 of the Companies Law (2020 Revision) (the "Companies Law").

The Legal Issue of Principle

Domestic Procedures

The Grand Court of the Cayman Islands has provided further helpful guidance to insolvency practitioners as to the circumstances in which leave will be granted to commence or continue proceedings against a company in liquidation. Adenium Energy Capital Limited (in official liquidation) (Adenium) is the latest in a line of cases in the Cayman Islands in which leave has been sought to commence proceedings under s 97(1) of the Companies Act against a Cayman Islands-incorporated company in liquidation.

The Cayman Islands Court of Appeal has recently delivered helpful clarification on the principles which apply with respect to security for costs when the official liquidators of an insolvent fund seek to bring claims against its former management. Where it is clear to the Court that a defendant was responsible for management decisions immediately before a company entered insolvency, the Court may exercise its discretion, notwithstanding the impecuniosity of the plaintiff company, not to order payment of security for costs.

Introduction

The Cayman Islands Government has published the Companies (Amendment) Bill, 2021 (Bill) which will introduce welcome amendments to the Companies Act (2021 Revision) (Act), to facilitate the efficient restructuring of distressed companies for the benefit of their stakeholders.

はじめに

ケイマン諸島と香港の裁判所は、この数ヶ月、ケイマン諸島の会社を再編することを目的とするクロスボーダーの申立てについて、関連する法域における裁判所がどのようにこれを処理するのか実用的な方向性を示しました。これは、国際礼譲および修正された普遍主義の原則に沿ったものです。

裁判所のスタート地点

手続が一つ以上のコモンローの法域で開始されたが、清算人の任命が未了の場合、裁判所が修正された普遍主義を適用するためのスタート地点は、倒産の主手続の役割を担うのはどの法域がより適当かということを考えることでしょう。最近の香港およびケイマン諸島の両地域の裁判例では、長年の先例に沿いながら、通常この法域とは会社の設立地であることを確認しました。なぜならば投資家やサービス・プロバイダーおよび債権者が通常関係しているからであり、とりわけ、会社の登録された営業所であったり、その取締役会の義務やその定款を規定する法律の地であるからです。

Introduction

The Grand Court has recently provided helpful clarification as to the appropriate test to be applied when a dispute arises over the identity of the insolvency practitioners proposed to be appointed by a creditor or the company. In Global Fidelity Bank Ltd (in Voluntary Liquidation)^[1] the Court confirmed the 3-stage test for determining independence and that in applying the test, significant weight should be afforded to the views of the creditors.

Background