The Companies (Amendment) Act, 2021 has come into effect 31 Aug.
The new regime governing restructuring and liquidation aims to attract and maintain this type of business in the Cayman Islands.
The legislation applies to a company, and any other entity or partnership, that is liable to be wound up under the provisions of Part V of the Companies Act (2022 Revision). Its two main objectives are to separate restructuring from the winding-up regime; and to improve access to both the restructuring and winding-up regimes.
As a secondary piece of legislation that supplements the Act, the Companies Winding Up Rules, 2018 also come into effect. These rules and forms were amended by the Insolvency Rules Committee, chaired by the Chief Justice, Anthony Smellie, QC.
The regime originates from proposals made by the Financial Services Legislative Committee (FSLC), which proposes enhancements to the Cayman Islands financial services regime, for government’s consideration and potential action. Established by government, FSLC members are representatives from the local financial services industry; and persons appointed by Attorney General, and the Ministry of Financial Services and Commerce.
The ministry said for the restructuring regime, Companies Register staff have been trained on the upgraded IT system that will support it, and briefed on the intent of the law.
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