The Cayman Islands Court of Appeal recently issued a decision concerning the impact of side letters on the constitutional arrangements of Cayman funds. One of the critical questions raised by the case was whether a side letter was enforceable when made between the investment manager of a fund and an individual institutional investor in that fund, where the investment manager had no actual or ostensible authority to make it.
The Cayman Islands Stock Exchange recently revised its Listing Rules. The main amendments have rebranded the rules relating to equity securities in Chapter 6 to facilitate listings by mineral companies, mineral exploration companies, start-ups, and companies offering securities to "specialist investors". A new provision in Chapter 5 allows suitably qualified corporate advisers to act as listing agents to equity issuers.
The Privy Council recently provided helpful and authoritative guidance on how provisions in a fund's contractual documentation addressing redemptions and suspensions of redemptions should be interpreted, and on how to determine which of the various documents constituting the investment agreement between a fund and its investor should take priority if the documents contain inconsistent provisions.