English court approves payment for votes in favour of a financial reorganisation
In the past 10 years, 105,290 companies have been registered in the Cayman Islands. However, in that same period, the total number of companies on the Cayman Islands Corporate Register has only increased from 64,495 to 92,964. The mismatch in these figures indicates that there must be a significant number of group restructurings, reorganisations or liquidations taking place on an annual basis. While some of these will be involuntary, many will take place with the consent and consideration of stakeholders, creditors and shareholders alike.
In the USA, the practice of offering payments in return for affirmative votes to a proposed financial reorganisation has become an accepted tool for securing that the restructuring goes ahead. There are no reported instances of this practice having been judicially considered in the Cayman Islands. However, the English High Court recently approved the use of payments for votes in a reorganisation of a Cayman Islands company, although not binding here, the decision could provide persuasive authority that such methods may be approved by the Cayman Court in due course…
If you are registered and logged in to the site, click on the link below to read the rest of the Appleby briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Appleby
News from The Lawyer
Briefings from Appleby
Bermuda’s legal framework facilitates the creation of flexible and economically viable co-investment vehicles within a stable and business-friendly jurisdiction.
Feltham v Bouskell provides a cautionary tale for lawyers regarding the need to act quickly upon the receipt of instructions from elderly or ill clients.
Analysis from The Lawyer
Offshore law firms have long supplemented their legal offerings with fiduciary business, but will that model last?
Business is booming in the Isle of Man, a small jurisdiction that thinks big