Cayman Islands: The Standing Of Redeeming Investors To Petition For Winding Up In The Cayman Islands

Last Updated: 26 October 2011
Article by David Butler

KEY POINTS

The liquidity crisis of 2008 produced a number of cases in which the Cayman courts resolved the tensions which had arisen between funds which had suffered from reduced liquidity and investors seeking to redeem their investments. The usual vehicle for the resolution of such tensions is the winding up petition. A key question which arises in a number of such petitions is whether the petitioner – a shareholder who has redeemed their investment but has not been paid out – has standing to petition as a creditor of the fund, or whether the petitioner has to rely on the just and equitable ground.