Guide To Directors' Duties In The Cayman Islands

PREFACE

This Guide provides a summary of duties and liabilities of directors of a company incorporated under Cayman Islands laws. It is not intended to be an exhaustive statement of the law but to be of assistance to persons who act as directors of one of the (approximately) 90,000 companies incorporated in the Cayman Islands.

The duties and liabilities of directors of a Cayman Islands company are governed by a mix of the Companies Law (2010 Revision) (the "Law") and the common law (insofar as it has not been amended by or incorporated into statute).

Whilst the Cayman Islands' courts regard decisions of the English Courts in relation to such matters as highly persuasive and largely adopt English common law principles, there are still significant differences of which directors of Cayman Islands companies need to be aware and which this Guide sets out.