Cayman Net Ltd. 'no longer operational'

Cayman Net Ltd., of which the late Desmond Seales was sole director and shareholder, is no longer operational, attorney Clyde Allen said in Summary Court on Monday. 

The company has been before the court since June 2010 on pension-related charges. 

Mr. Seales, who was not named as a defendant, was the publisher of Cayman Net News. He died in July 2010. The newspaper and website continued, although the last online articles are dated Dec. 25, 2013. 

On Monday, Mr. Allen told Magistrate Valdis Foldats that Mr. Seales’s widow, who was administrator for the estate, “has approached the Registrar of Companies and, I believe, filed the necessary documents to dissolve the company.” 

He said there is clearly a duty under the Companies Law that if one cannot pay the company’s expenses because they are not solvent, they should not operate. 

Mr. Allen emphasized that Veronica Seales is not a director of the company. “She was caught in a situation where she was trying to assist in the operation of the company following the passing of her husband. He was the sole director and shareholder,” the attorney explained. 

Crown Counsel Kenneth Ferguson said if Cayman Net Ltd. is going into bankruptcy, then its former employees are left in the cold. “That’s one reason we have to be very vigilant and see that these companies pay their statutory obligations.” 

Of Mr. Allen’s announcement, he commented, “I’m sure this is news to Mr. Best.” Charles Best is senior pensions officer with the Department of Labour and Pensions. 

Mr. Allen agreed with the need for vigilance. “But if a company is insolvent, it is insolvent,” he said. 

He told the court he did not know how long it will take the Registrar of Companies to process the papers. 

Mr. Ferguson said he was sure Mrs. Seales would assist as much as she could. 

The magistrate set the matter for mention again on Feb. 13. 

The charges against Cayman Net Ltd. do not specify amounts owed or the number of employees affected. One charge is failing without reasonable cause to contribute to a pension plan for employees. 

The second charge is failing to pay arrears contributions within the time given. According to details set out in this charge, the company was directed by the Supervisor of Pensions in a letter dated Dec. 9, 2009, to pay past contributions, but it failed to comply with that direction. The time periods cited are August 2007 to January 2008; October 2008 to March 2009; May 2009 to February 2010. 

Informal records kept by the Caymanian Compass indicate that a payment of $150 had been made before the case was mentioned in February 2013. At that time, the court was told that another payment was attempted but was refused. 

In June 2013, $200 per month was offered, but Mr. Ferguson has been reluctant to agree to any payment plan that offers less than $500 per month.