Corporate governance grasps attention

Over one hundred professionals registered to attend a Cayman Islands Company Managers Association meeting at the Brasserie Conference Centre recently to receive a presentation from Laura Hatfield, a partner in the local law firm of Solomon Harris.

Ms Hatfield’s presentation was on the subject of Corporate Governance and Directors’ Liability.

During his introduction Paul Harris, president of the association, said the presentation was timely since many professionals in the Cayman Islands were turning to the provision of independent directors to Cayman Islands companies as a primary occupation. Also the subject of independent directors to mutual funds was presently being considered by the Monetary Authority as evidenced by recent speeches given by the chairman and the managing director of the Authority.

Ms Hatfield illustrated her presentation with a detailed Power Point Projection dealing with the fiduciary duties of directors, to whom the duties are owed and the standard of care to be exercised. The extent to which a director can rely on others was also discussed as was the disclosure of any delegation of duties. Tips were also given as to how a director can fulfil those duties, particularly with regard to hedge funds.

Mr. Harris said he had received several compliments from attendees after the presentation and had also received six new applications for membership in the Company Managers Association from firms recently set up by professionals specifically to provide directors to Cayman companies, particularly hedge funds which normally wish to have at least one Cayman resident director on their boards.

Mr. Harris said that CICMA was set up in 1996 initially to establish a code of conduct for company management firms which also embraced the provision of directors.

Copies of Ms Hatfield’s presentation can be obtained by emailing the president of CICMA at [email protected]