The Cayman Islands Parliament has approved amendments requiring additional information to be maintained by Cayman companies. 

Of key interest to investment funds, is that Cayman companies will need to record certain "voting rights" on the register of members from November 2019 for companies incorporated after 8 August 2019, and from February 2020 for companies incorporated earlier.   

Additional changes reduce the filing deadlines for changes to board of directors and officers from 60 to 30 days, and increase the penalties for failure to comply with beneficial ownership requirements.

A few practical takeaways:

  • The principal register of members of Cayman domiciled funds is typically maintained by the fund administrator. However, in some scenarios, a separate service provider (typically, the registered office) may maintain a branch register. 
  • Investment fund clients should therefore contact all relevant service providers to ensure that relevant voting information is properly documented by the relevant party and by the appropriate deadline.
  • Cayman companies should take this opportunity to ensure that director information filed with the Registrar of Companies is correct and that appropriate systems are in place to communicate any changes to the registered office expeditiously.
  • Cayman companies should also ensure that relevant beneficial ownership requirements have been satisfied, that the board reviews each company's beneficial ownership classification regularly, and that appropriate systems are in place to communicate any relevant changes to the registered office expeditiously.

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