In a Judgment handed down on 18 November 2016, the Cayman Islands Court of Appeal ruled that using liquidators’ powers to obtain extra territorial non-party disclosure was outside the reach of the Cayman Islands Companies Law (2013 Revision) (the “Companies Law”). Specifically, that the official liquidators (“JOLs”) could not use the machinery of a letter of request based on Section 103 and/or 138(1) of the Companies Law to compel a foreign bank and several of its employees to deliver up documents situated out of the jurisdiction for the purpose of providing discovery in Cayman litigation to which none of them are parties, as liquidators’ statutory powers are not available for the benefit of a party to an action where the purpose of the liquidation will not be served.
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