The New Cayman LLC: Fund Governance Implications

The Cayman Islands Limited Liability Companies Law, 2016 (CLLC) will take effect from July 13, 2016.

The Cayman Islands expects that the CLLC will enhance its competitiveness by offering fund sponsors another option for structuring their Cayman funds, with the same familiarity and equivalence of the Delaware Limited Liability Company Act (DLLC) used for their onshore vehicles.

This DMS Advisory primarily addresses the fiduciary responsibilities and fund governance implications of the CLLC; however, the CLLC is not solely intended for structuring private funds.  Like the DLLC, the CLLC can be used to engage in virtually any lawful business activity, and structured in virtually any manner, that best suits the needs of stakeholders.