Cayman Islands Voluntary Liquidations 2021

Historically, the timing of the commencement of the voluntary liquidation of a Cayman Islands company was often driven primarily by the desire to avoid incurring the following year's annual government fees.  To avoid those fees, the liquidation had to commence by December, with the final meeting being held before the end of January.  This timetable resulted in an effective dissolution date into the next calendar year, while still avoiding the government fees for that year.  However, given increasing regulatory costs and annual filing / reporting requirements, we often see companies looking to commence their liquidations earlier.  There may now be increased operational efficiencies in completing the dissolution within the current calendar year as additional regulatory filings and other costs for stub years can be avoided.  Similar considerations may also apply to other types of Cayman entities.