Latest updates

Astral projections: Cayman Islands STAR trusts
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 06 December 2018

The Special Trusts (Alternative Regime) (STAR) Law introduced so-called 'STAR trusts' into Cayman Islands law to overcome some of the difficulties arising from more conventional offshore trusts. One of the most challenging aspects of establishing a STAR trust is the drafting of the purposes for which it is established. While the STAR Law contains rules to prevent STAR trusts from failing (eg, failure resulting from object and beneficiary uncertainty), there are a number of traps for the unwary.

Cayman Islands foundation companies at a glance
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 25 October 2018

Foundation companies are a unique structuring option in the Cayman Islands for wealth planning and also serve as holding and special purpose vehicles for commercial transactions and cryptocurrency offerings. Although a foundation company may be used as an alternative to a Cayman trust, a number of features specific to Cayman trust law have been incorporated into the foundation company vehicle which should prove beneficial to investors and private clients.

Structuring ICOs in the Cayman Islands
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 18 October 2018

The Cayman Islands has become a popular choice for many businesses conducting initial coin offerings (ICOs) due to its tax neutrality, its reputation as a pre-eminent jurisdiction for investment funds and its securities law regime, which is generally more permissive than those of other jurisdictions. However, before any steps towards conducting an ICO are taken, it is critical that comprehensive legal and tax advice is obtained for each business before any token is sold or any entity is formed.

Grand Court examines master-feeder redemption procedures
  • Litigation
  • Cayman Islands
  • 16 October 2018

A recent Grand Court decision is significant for Cayman master-feeder fund structures. Funds and their advisers should review the redemption provisions in master fund articles of association and partnership agreements to ensure that, operationally, redemptions are being effected in accordance with such documents.

Grand Court examines master-feeder redemption procedures
Ogier
  • Private Client & Offshore Services
  • Cayman Islands
  • 11 October 2018

A recent Grand Court decision is significant for Cayman master-feeder fund structures. Funds and their advisers should review the redemption provisions in master fund articles of association and partnership agreements to ensure that, operationally, redemptions are being effected in accordance with such documents.

Grand Court gives directions for dissenters' discovery in appraisal action
  • Private Client & Offshore Services
  • Cayman Islands
  • 13 September 2018

Following the recent Court of Appeal decision in Qunar, the Grand Court handed down written reasons for its further directions for dissenters' discovery in a Section 238 appraisal action. The reasons acknowledge that the Grand Court's approach to discovery has changed as a result of the Court of Appeal's decision, such that a "general requirement for automatic mutual disclosure" now applies.

Grand Court gives directions for dissenters' discovery in appraisal action
  • Litigation
  • Cayman Islands
  • 11 September 2018

Following the recent Court of Appeal decision in Qunar, the Grand Court handed down written reasons for its further directions for dissenters' discovery in a Section 238 appraisal action. The reasons acknowledge that the Grand Court's approach to discovery has changed as a result of the Court of Appeal's decision, such that a "general requirement for automatic mutual disclosure" now applies.

Dishonesty is a serious allegation and must not be pleaded lightly: rolled-up plea is insufficient
  • Private Client & Offshore Services
  • Cayman Islands
  • 23 August 2018

The Grand Court has set out the requirements for pleading a cause of action of dishonest assistance and reaffirmed the established principles of the defence of estoppel. The decision provides welcome comfort to corporate entities with robust and thorough systems for detecting fraud.

Dishonesty is a serious allegation and must not be pleaded lightly: rolled-up plea is insufficient
  • Litigation
  • Cayman Islands
  • 21 August 2018

The Grand Court has set out the requirements for pleading a cause of action of dishonest assistance and reaffirmed the established principles of the defence of estoppel. The decision provides welcome comfort to corporate entities with robust and thorough systems for detecting fraud.

AHAB v Saad – importance of a particularised and principled tracing claim
  • Private Client & Offshore Services
  • Cayman Islands
  • 26 July 2018

In Ahmad Hamad Algosaibi & Brothers Company (AHAB) v Saad, the Grand Court found that AHAB's claims, which attempted to trace its funds into the hands of defendant SIFCO5, were "unparticularised and unprincipled". Further, AHAB was unsuccessful in establishing that funds representing traceable proceeds from the Money Exchange reached SIFCO5 or in articulating any discernible cause of action against SIFCO5 in respect of such funds.

AHAB v Saad – importance of a particularised and principled tracing claim
  • White Collar Crime
  • Cayman Islands
  • 23 July 2018

In Ahmad Hamad Algosaibi & Brothers Company (AHAB) v Saad, the Grand Court found that AHAB's claims, which attempted to trace its funds into the hands of defendant SIFCO5, were "unparticularised and unprincipled". Further, AHAB was unsuccessful in establishing that funds representing traceable proceeds from the Money Exchange reached SIFCO5 or in articulating any discernible cause of action against SIFCO5 in respect of such funds.

Security for costs – a foreign affair
  • Private Client & Offshore Services
  • Cayman Islands
  • 19 July 2018

During the early stages of litigation, a well-advised defendant will consider how to enforce a Cayman Islands court costs order in the foreign jurisdiction where the claimant's assets are located, and whether it should seek security from the claimant for the costs of doing so. The Court of Appeal has recently considered whether a foreign claimant should give security limited to the costs of enforcing an order in the foreign jurisdiction only or for the (much greater) amount of defending the appeal.

Security for costs – a foreign affair
  • Litigation
  • Cayman Islands
  • 17 July 2018

During the early stages of litigation, a well-advised defendant will consider how to enforce a Cayman Islands court costs order in the foreign jurisdiction where the claimant's assets are located, and whether it should seek security from the claimant for the costs of doing so. The Court of Appeal has recently considered whether a foreign claimant should give security limited to the costs of enforcing an order in the foreign jurisdiction only or for the (much greater) amount of defending the appeal.

Grand Court dismisses multibillion-dollar fraud claims in one of largest Ponzi schemes in history
  • Private Client & Offshore Services
  • Cayman Islands
  • 12 July 2018

In a landmark ruling, the Grand Court emphatically dismissed a multibillion-dollar claim in a case involving allegations of fraud arising from one of the largest corporate collapses of the financial crisis. The case has showcased the court's ability to manage high-profile large-scale litigation, demonstrating especially the quality of the Cayman Islands judiciary and the court's ability to use cutting-edge technology, as well as the resources and flexibility to manage a year-long, multi-jurisdictional trial.

Grand Court dismisses multibillion-dollar fraud claims in one of largest Ponzi schemes in history
  • White Collar Crime
  • Cayman Islands
  • 09 July 2018

In a landmark ruling, the Grand Court emphatically dismissed a multibillion-dollar claim in a case involving allegations of fraud arising from one of the largest corporate collapses of the financial crisis. The case has showcased the court's ability to manage high-profile large-scale litigation, demonstrating especially the quality of the Cayman Islands judiciary and the court's ability to use cutting-edge technology, as well as the resources and flexibility to manage a year-long, multi-jurisdictional trial.

Court declines to restrain foreign trust proceedings
  • Litigation
  • Cayman Islands
  • 03 July 2018

The recent Grand Court decision in T Co v AA, BB, CC, DD, EE (a minor) is a good reminder of the court's approach to service out of the jurisdiction and provides insight on the scope of jurisdiction clauses contained in trust instruments.

Court declines to restrain foreign trust proceedings
  • Private Client & Offshore Services
  • Cayman Islands
  • 28 June 2018

The recent Grand Court decision in T Co v AA, BB, CC, DD, EE (a minor) is a good reminder of the court's approach to service out of the jurisdiction and provides insight on the scope of jurisdiction clauses contained in trust instruments.

Getting schooled in Nord Anglia – extra safeguards for companies facing appraisal litigation
  • Litigation
  • Cayman Islands
  • 12 June 2018

In Nord Anglia the justice made directions orders regarding the use of keyword searches, the number and scope of information requests, and the conduct of management meetings consistent with the orders made in Xiadu Life Technology. Further, the judgment will provide welcome safeguards for companies facing appraisal litigation in the Cayman Islands if adopted on a wider basis.

Getting schooled in Nord Anglia – extra safeguards for companies facing appraisal litigation
  • Private Client & Offshore Services
  • Cayman Islands
  • 07 June 2018

In Nord Anglia the justice made directions orders regarding the use of keyword searches, the number and scope of information requests, and the conduct of management meetings consistent with the orders made in Xiadu Life Technology. Further, the judgment will provide welcome safeguards for companies facing appraisal litigation in the Cayman Islands if adopted on a wider basis.

Shanda Games: Court of Appeal confirms timing for leave to appeal to Privy Council
  • Litigation
  • Cayman Islands
  • 05 June 2018

Appeals to the Privy Council from the Court of Appeal are regulated in the Cayman Islands (Appeals to Privy Council) Order 1984. However, the order does not provide for how to determine the date of a decision. The Court of Appeal recently ruled that for the purposes of an application for leave to appeal to the Privy Council, time runs from the date on which an order is sealed or perfected, not the date on which the judgment is delivered.