ARTICLE · 29 JUNE 2012

Cayman Court Overrules Valuation Placed Upon Redemption Paid In Kind

Travers Thorp Alberga

Explore more from Travers Thorp Alberga

The Grand Court of the Cayman Islands has set out the principles to be applied to the valuation of redemptions in kind and to the interpretation of discretions bestowed upon directors in constitutional documents

Cayman IslandsWealth Management

Michael Alberga

Author LinkedIn connections

The Grand Court of the Cayman Islands has set out the principles to be applied to the valuation of redemptions in kind and to the interpretation of discretions bestowed upon directors in constitutional documents.

Executive summary

On 18 April 2012 the Grand Court ordered the winding up of FIA Leveraged Fund (the "Fund") on the basis that the Fund, having failed to transfer assets of sufficient value upon a redemption in kind, was unable to pay its debts. The Grand Court rejected the value placed on the assets by the Fund.

This is the first decision of a Cayman Islands Court on the application of in kind distribution powers and affirms a number of principles applicable to the powers of directors and the interpretation of the constitutional documents of Cayman Islands funds.

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

Related Articles

An Essential Reminder: The Role Of Professional Trustees In Cayman Islands Trust Structures

Cayman IslandsWealth Management

Department For International Tax Cooperation Portal Services

Cayman IslandsWealth Management

CIMA’S New AML Audit Rules Effective 18 September 2026 And What Investment Funds Need To Know

Cayman IslandsWealth Management

Cayman Islands Reserved Powers Trusts: A Sophisticated Approach To Integrating Wealth Preservation And Strategic Influence

Cayman IslandsWealth Management

Cayman Islands Private Wealth Solutions For Latin American High Net Worth Families

Cayman IslandsWealth Management

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

Read more about

See more popular content from

Wealth ManagementTravers Thorp Alberga

CIMA’S New AML Audit Rules Effective 18 September 2026 And What Investment Funds Need To Know

The Cayman Islands Monetary Authority has introduced sweeping changes to anti-money laundering audit requirements for investment funds, mandating independent audits of entire compliance programmes by September 2026. This marks a fundamental departure from previous practice where internal AML officers could conduct their own testing, raising critical questions about implementation timelines, qualified auditor availability, and compliance costs for funds operating in the jurisdiction.

Cayman IslandsWealth Management

Defaulting Limited Partners: Challenges For Private Equity In 2009

Liquidity concerns are all too familiar to most private equity fund managers these days, and investors in their funds have not been immune.

Cayman IslandsWealth Management

New Thresholds For PR By Independent Means

A recent change to the Immigration Law has resulted in a significant increase in the qualifying sums for persons seeking to make an application to the Cayman Islands Government for permanent residence by independent means.

Cayman IslandsWealth Management

The Stock Exchange

On January 2, 1997 The Cayman Islands Stock Exchange (CSX) became part of the vast network of financial services offered by the Cayman Islands.

Cayman IslandsWealth Management

Travers Thorp Alberga

Cayman Islands Master Funds - New Registration Requirements

On 22 December 2011, the Cayman Islands introduced legislation to widen the range of master funds that are required to register with the Cayman Islands Monetary Authority ("CIMA").

Cayman IslandsWealth Management

Travers Thorp Alberga

Cayman Islands Reserved Powers Trusts: A Sophisticated Approach To Integrating Wealth Preservation And Strategic Influence

The Cayman Islands (Cayman) has long set the benchmark for sophisticated private wealth structuring and solutions.

Cayman IslandsWealth Management

Private Equity Funds- An Overview Of The Market, Trends And Opportunities

Private equity funds have been capturing the attention of investors and the press in the past few years for a number of reasons. Their performance has typically outstripped the equity markets and other alternative investment strategies.

Cayman IslandsWealth Management

Recent Decisions From The Cayman Islands In Merger Valuation Disputes

A number of Section 238 cases are continuing to work their way through the courts.

Cayman IslandsWealth Management

Cayman Counsel Series: Powers Of Attorneys - Execution Formalities

A power of attorney is a document by which the donor gives the attorney the power to act on behalf of and in the name of the donor.

Cayman IslandsWealth Management

A Guide To Real Estate Taxes In The Cayman Islands

The absence of any local corporate and individual taxes on the sale of real estate in the Cayman Islands is one of the major attractions for both onshore and offshore investors of real estate in the Cayman Islands.

Cayman IslandsWealth Management

Panama Leaks: Through The Offshore Looking Glass

So excited are the left-wing media at the apparent ease with which the legitimate right to privacy can now be breached, that absent from the extensive coverage of the Panama Papers leak...

PanamaWealth Management

Travers Thorp Alberga

The Working Guide To Fund Finance (First Edition, Nov 2024)

For many decades the Cayman Islands has been one of the leading offshore jurisdictions for the establishment of private equity, private credit and hedge funds, and stands at the centre of their capital flows and sophisticated legal structures.

Cayman IslandsFinance and Banking

Travers Thorp Alberga

The Stock Exchange

On January 2, 1997 The Cayman Islands Stock Exchange (CSX) became part of the vast network of financial services offered by the Cayman Islands.

Cayman IslandsWealth Management

Travers Thorp Alberga

Cayman Islands Master Funds - New Registration Requirements

On 22 December 2011, the Cayman Islands introduced legislation to widen the range of master funds that are required to register with the Cayman Islands Monetary Authority ("CIMA").

Cayman IslandsWealth Management

Travers Thorp Alberga

Residence and Employment

The Cayman Islands, being a British Dependent Territory and not an independent country, cannot grant citizenship, which is governed by the British Nationality Act, but it determines its own immigration policies, which are contained in the Immigration Law, and the conditions on which any individual, partnership or company may carry on business.

Cayman IslandsImmigration

Travers Thorp Alberga

Dealing In Land

In 1971, the Government of the Cayman Islands enacted the Registered Land Law. This Law introduced a system of land registration which is accurate, efficient, and simple. This system is similar in a number of ways to the registered land system in the United Kingdom and to the Australian Torrens System (invented by Sir Robert R. Torrens, an Australian who on the 27th of January, 1858, introduced a bill in South Australia which later became in Australia The Real Property Act).

Cayman IslandsReal Estate and Construction

Travers Thorp Alberga

Obtaining A Banking License in the Cayman Islands

The Cayman Islands are now among the world's leading offshore banking centres and have over five hundred (500) licensed banks and trust companies, including 45 of the world's top 50 international banks. Bank and Trust companies represent 65 different countries in the world, including the United States, Canada, the United kingdom, Switzerland, Hong Kong, Japan, Germany, France, Brazil, Mexico and Portugal.

Cayman IslandsFinance and Banking

Travers Thorp Alberga

Mondaq Podcast: The Evolution of Fund Finance Products in the U.S.

Join Dr Agnes Molnar from Travers Thorp Alberga for an informative podcast interviewing Michael Mascia from EverBank.

GlobalFinance and Banking

Travers Thorp Alberga

New Flexible Offshore Vehicle: The Cayman Islands Limited Liability Company

The Cayman Islands has taken steps to introduce a new vehicle in 2016. The Limited Liability Companies Bill, 2015 (the "Law") was published in December 2015, and is expected to become law in the first half of 2016.

Cayman IslandsWealth Management

Travers Thorp Alberga

Corporations And Companies

For ease of reference we have divided the following information into two parts. The first section provides a comprehensive summary of the subject matter, Corporations and Companies and the second section entitled "Memo-<B> </B>Incorporation Of Companies In The Cayman Islands," simply provides a brief overview, in memo format, of the subject matter.

Cayman IslandsCorporate/Commercial Law

Travers Thorp Alberga