David Charles Lloyd

New Cayman Islands Foundation Company – Benefits for SPV Structures David Charles Lloyd Cayman's first of its kind hybrid Foundation Company is likely to appeal as a holding vehicle, SPV and succession planning option. The new structure – introduced by the enactment of The Cayman Islands Foundation Companies Law, 2017 – retains features of companies, and of civil law foundations or common law trusts. By enacting the Foundation Law, the Cayman Islands has introduced a novel form of vehicle into its legal system. A Foundation Company has features and flexibility that have been designed to allow a company, retaining separate legal personality and limited liability, to function like a civil law foundation or common law trust. When looking at other jurisdictions, the approach taken by the Foundation Law is unique and it is hoped that the creative solution will appeal to many clients. It is expected that its uses may include as a holding vehicle for shares in a p...

Directors Duties – Cayman Islands Companies David Charles Lloyd There is no statutory codification in the Cayman Islands of the general duties, obligations and liabilities owed by directors to Cayman Islands exempted companies and the general duties are based on a combination of English common law, statute and regulatory guidance. In most cases directors are responsible to the company and not to the shareholders as individuals. The company is defined by reference to the interests of both present and future shareholders of the company as a whole and the consent of individual disadvantaged shareholders is not required where directors choose a particular course of action.  If a company is in financial difficulty, the interests of the company will also include the interests of the creditors. In certain prescribed circumstances, the directors may owe duties to individual shareholders. For example, the articles of association or a shareholders’ agreement may impose specifi...