A Developing Discourse From The Courts

Over the past quarter, the judges of the Financial Services Division of the Grand Court of the Cayman Islands and the Cayman Islands Court of Appeal (CICA) have issued a number of significant and very detailed judgments analyzing a range of issues of importance to the local financial services industry. As discussed in more detail below, company directors and shareholders, professional trustees, liquidators and creditors, and potential litigation funders, now all have access to developing jurisprudence in their respective arenas, and further helpful guidance as to the interpretation of local laws.

Companies and shareholders

A very well-known and now widely used part of local legislation, section 238(8) of the Cayman Islands Companies Law entitles a shareholder who dissents from a merger or consolidation of a Cayman company under the statutory merger provisions contained in Part XVI of the Companies law to be paid "the fair value of his shares." Litigation centered