Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 12 JULY 2017

The Rocky Road To Redemption

Conyers
Conyers
Contributor
Conyers

Conyers

For over 25 years Conyers’ London office has provided time-zone sensitive advice and support to our...

View firm profile
Explore more from Conyers

Herald's position was that all investors who were unpaid on 12 December 2008 rank as ordinary shareholders and should therefore be paid pari passu.

Cayman IslandsLitigation, Mediation & Arbitration
Conyers
Conyers
Spencer Vickers
Spencer Vickers
Paul Smith
Paul Smith
Author LinkedIn connections

Investors will undoubtedly agree that "the path to redemption is not always smooth" as stated by Lord Mance in the Privy Council's recent judgment in Pearson -v- Primeo Fund [2017] UKPC 19. The judgment brings finality to the dispute between Herald Fund SPC (in Official Liquidation) ("Herald") and Primeo Fund (in Official Liquidation) ("Primeo") regarding the redemption of shares. The Privy Council dismissed Herald's appeal, confirming the earlier decisions of the Cayman Islands Court of Appeal and Grand Court. All three courts found that an investor who had properly redeemed its shares, but had not been paid, will be a creditor of the company in respect of its redemption proceeds. Accordingly, its claim (as a creditor) will rank ahead of the remaining investors in the liquidation of the company, albeit behind those of 'ordinary' creditors.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Fraud, Asset Tracing And Recovery 2026 – Cayman Islands (Commercial Dispute Resolution, CDR)

Explore the comprehensive legal framework for fraud litigation in the Cayman Islands, including cross-border asset tracing mechanisms, discovery tools, and enforcement strategies. Learn how the jurisdiction's experienced judiciary handles complex international fraud disputes through freezing orders, Norwich Pharmacal applications, and innovative funding arrangements.
Cayman IslandsLitigation, Mediation & Arbitration
Carey Olsen
Carey Olsen
Article

Final Means Final: Wei v Wang And The Common Law Enforcement Of Foreign Judgments In The Cayman Islands

A recent English High Court decision confirms that foreign judgments may be enforced even when extraordinary review procedures remain available, provided the judgment presently determines the parties' rights. The case also reinforces that natural justice defences are reserved for genuine procedural unfairness, not disagreements with foreign courts' conclusions. How does this ruling align with the Cayman Islands' established approach to foreign judgment enforcement?
Cayman IslandsLitigation, Mediation & Arbitration
Appleby
Appleby
Article

Injunctive Relief In Another Form? Cayman Court's Jurisdiction To Appoint JPLs Despite Ongoing Arbitration

In Peakwave Investment Management Ltd v Energy Evolution GP Ltd ,[1] the Grand Court confirmed that it has jurisdiction to appoint provisional liquidators notwithstanding the fact that the company's shareholders are engaged in an arbitration over its affairs, as mandated by a binding arbitration agreement. This article considers the decision and its implications.
Cayman IslandsLitigation, Mediation & Arbitration
Appleby
Appleby
Article

Thalassa Investments LP: Section 22 And Specific Discovery - Strategic Considerations For Limited Partners Seeking Information And Documents

The Grand Court's decision in Thalassa Investments LP examines the boundaries of discovery rights in just and equitable winding up proceedings, particularly when limited partners allege serious misconduct by general partners. This ruling clarifies the strategic considerations limited partners must weigh when choosing between pursuing their statutory right to information under section 22 of the Exempted Limited Partnership Act versus obtaining documents through traditional discovery processes.
Cayman IslandsLitigation, Mediation & Arbitration
Appleby
Appleby
Article

2026 Guide To International Arbitration In The Cayman Islands

International arbitration is experiencing significant growth in the Cayman Islands as both domestic and international parties increasingly choose this jurisdiction for dispute resolution. The Cayman Islands offers experienced practitioners, supportive courts, and a robust legal framework based on the UNCITRAL Model Law and English Arbitration Act 1996, making it an attractive venue for arbitration, particularly in financial services and investment fund disputes.
GlobalLitigation, Mediation & Arbitration
Appleby
Appleby
Article

Stablecoin Regulation 2026: Key Takeaways From Stablecoin Week And The Clarity Act Vote

The failure of the Digital Asset Market Clarity Act in the US Senate leaves cryptocurrency market participants navigating regulatory uncertainty, while major blockchain networks accelerate infrastructure development to integrate traditional banks onto stablecoin payment rails. Cross-border payments emerge as a dominant use case, with stablecoins offering faster, cheaper international settlements than correspondent banking, though compliance frameworks must evolve to match real-time transaction speeds.
Cayman IslandsFinance and Banking
Conyers
Conyers
Article

The Cayman Islands Makes Its Mark At The NAIC 2026 Summer National Meeting

The Cayman Islands has formally applied for Qualified Jurisdiction Status with the NAIC, marking a pivotal moment for its insurance sector. As regulators advance significant changes to risk-based capital requirements for offshore reinsurance and intensify scrutiny of private credit investments, stakeholders face a transforming regulatory landscape that will reshape capital treatment and competitive positioning.
Cayman IslandsInsurance
Conyers
Conyers
Article

SGX Mainboard & Catalist Public Companies Report L H1 2026

Singapore's capital markets are experiencing a significant transformation driven by the MAS-led Equity Market Development Programme, which has injected S$6.5 billion in liquidity and sparked a revival in IPO activity. With over 20 companies preparing to go public and new cross-border listing infrastructure connecting SGX with Nasdaq, the market is showing signs of meaningful structural reform and growing institutional confidence.
SingaporeFinance and Banking
Conyers
Conyers
Article

BVI Annual Returns: Preparation For Upcoming Deadline – 30 September 2026

BVI companies must file annual returns containing balance sheets and income statements with their registered agents. Companies with a December 31 year-end face a September 30, 2026 deadline, while others must file within nine months of their financial year-end. Conyers offers preparation services starting at $1,500 for simple holding companies and provides secure online filing through their client portal.
British Virgin IslandsCorporate/Commercial Law
Conyers
Conyers
Article

Hong Kong’s Uncertificated Securities Market Regime: What Cayman Islands And Bermuda Issuers Need To Know

Hong Kong's uncertificated securities market regime, launching November 2026, eliminates paper share certificates for listed securities, requiring electronic title holding through approved registrar systems. Cayman Islands and Bermuda issuers must transition within five years, necessitating constitutional document amendments and new operational procedures. Companies need to appoint approved securities registrars, plan shareholder approvals, and ensure compliance before their assigned transition dates.
Hong KongCorporate/Commercial Law
Conyers
Conyers