The Cayman Court Provides Clarification Regarding Recognition For Foreign Receivers

A recently released decision of the Grand Court of the Cayman Islands clarifies the circumstances in which receivers appointed by foreign courts or by foreign governmental bodies may seek the recognition in the Cayman Islands.

In the matter of the Silk Road Funds Ltd (Unreported, 8 February 2018, Smellie CJ) examined the matters that the Court would consider when deciding whether to grant orders allowing recognition and enforcement of the functions and powers of receivers appointed by a foreign court.

The Court looked at the ways in which an officeholder could seek recognition and assessed them in light of the circumstances of their appointment. The main routes were: (i) Part XVII of the Companies Law; (ii) "Modified universalism"; and (iii) common law.