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The process by which these amendments were prepared reflects Government’s renewed partnership with the private sector...

Minister of Finance, the Hon. McKeeva Bush. OBE, JP

Published 12th April 2011, 4:23pm

George Town, Grand Cayman — Legislative efficiencies have, once again, placed the Cayman Islands financial services industry at the forefront of an increasingly competitive market. The Companies Law (Amendment) Bill, 2011, makes necessary provisions to enhance the jurisdiction’s offerings in the areas of company registrations and securities investment.

Cayman Islands Premier and Minister of Finance, the Hon. McKeeva Bush. OBE, JP, tabled the bill in the Legislative Assembly on the 11 April 2011. He noted, “The process by which these amendments were prepared reflects Government’s renewed partnership with the private sector, which has been instrumental in soliciting the views of industry and providing input into the drafting process. All departments involved, along with the Financial Services Legislative Committee, which is comprised mainly of private sector members, should be commended for their tireless efforts to ensure that the Cayman Islands remains a key player in the global financial services market.”

The provisions of the Bill include:

  • Amendment of merger provisions
  • Treasury Shares
  • Paperless share transfer
  • Share redemption and repurchases
  • Execution of documents
  • Update of foreign company provisions
  • Special resolutions: permit different thresholds for different matters
  • Permitting company names in a foreign script
  • Segregated Portfolio Companies – portfolio names, director’s liability, segregation of assets and termination of SPC’s.

“These amendments are the end result of an extensive consultation process, aimed at addressing client and market-driven issues that have arisen in practice. It is expected to increase the attractiveness of the Cayman Islands as a domicile for corporate entities and maintain our competitive edge. Therefore, our local industry will benefit ten-fold from these new amendments, creating new opportunities for growth in this key sector of our economy,” Mr. Bush continued.

Charles Jennings, Chairman of the Financial Services Legislative Committee added, “The adoption of these amendments has shown that the purpose of the Committee, namely to propose and draft new laws and amendments that will enhance the jurisdiction's reputation as a leading financial services centre, has been achieved. The Committee looks forward to being able to continue its work in partnership with the Government, the Companies Law amendments being the first of several proposals that the Committee is currently working on."

Government departments that played an intricate part of the drafting and management process of the Bill are the Ministry of Finance, the Registrar of Companies, the Cayman Islands Monetary Authority and Legislative Drafting.

Laws that were amended to facilitate the passing of the Companies Law (Amendments) Bill, 2011, were the Property (Miscellaneous Provisions) Law and the Securities Investment Business Law.

 

For more information, please contact the Financial Services Secretariat at (345) 945-5819 or via email at financepr@gov.ky.