Amendments to attract and maintain restructuring and insolvency business in the Cayman Islands are contained in the Companies (Amendment) Bill, 2021. These are some of the bill’s key amendments.
• A new standalone restructuring regime. Separating the restructuring regime from company winding-up procedures removes the appearance that the restructuring regime is part of the liquidating process. For companies considering using Cayman’s restructuring regime, that appearance was a potential deterrent.
• Improved access to the restructuring regime, and timelier access. Relevant parties would be able to apply to the Court to appoint restructuring officers. Also, the amendments would enable directors to apply to the Court without a shareholder resolution, or without needing powers in their companies’ articles of association that allow them to do so.
- Improved access to the insolvency regime.
- For all companies incorporated before these amendments commence, the bill’s opt-in regime would enable a company to include an express provision in its articles of association to allow directors to present winding up petitions without requiring a shareholder resolution.
- For companies incorporated after these amendments commence, directors would be able to present winding up petitions without requiring shareholder resolutions, unless an express provision is included in their companies’ articles of association that prevent this.
The bill stems from proposals made by the Financial Services Legislative Committee. The Ministry of Financial Services has consulted stakeholders on the proposals and considered their input during the drafting of the bill.
The bill will be presented to Parliament by the Minister of Financial Services and Commerce.