Krys & Associates introduce new insolvency law

On 1 March, 2009 the Companies (Amendment) Law 2007 and related Insolvency Practitioners Regulations 2008 and the Companies Winding Up Rules 2008 were enacted.

In conjunction with these revisions, Krys & Associates, who specialise in corporate recovery, insolvency and forensic accounting, took the opportunity to inform local lawyers, fund administrators, trust officers and directors and the Cayman Islands Monetary Authority of the new insolvency regime.

The presentation was conducted by members of senior staff from Krys & Associates and attended by over 50 financial professionals. The moderator was Anne-Marie Barley supported by the panel of Matt Clingerman, Tim Le Cornu, Richard Hamilton and David Hoggins, all of Krys & Associates.

The senior staff of Krys & Associates explained the new insolvency law and rules and how these were the first procedural rules specifically drafted for the Cayman Islands and detailed the new laws.

The speakers then summarised the process of statutory demands and petitions, which lead up to the appointment of a liquidator by the Cayman Courts and the other petitions for winding-up which can be made by the contributories, being the shareholders of the company, the company itself or the Cayman regulator.

The session dealing with Voluntary Liquidations was of particular interest to the audience based on the questions raised and this was followed by an explanation of the rules on Official Liquidations which highlighted the major changes as well as the how the new rules deal with all the legal and procedural responsibilities of the Liquidator.

The session closed with a discussion of the rules relating to the qualification requirements and remuneration of Liquidators and an opportunity for the panel and the audience to discuss the practical issues relating to this new law.

Kenneth Krys, managing director of Krys & Associates summarised the purpose for hosting the event: ‘The Amended Law and respective Rules and Regulations provide clear and tailored rules and guidance to any entity in an insolvency or liquidation position. It is important that professionals are aware of these changes to ensure compliance otherwise they may be subject to fines or other sanctions.’

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