On 18 December 2015, the Limited Liability Companies Bill, 2015
(the Bill) was published in the Cayman Islands.
The Bill is expected to be enacted in early 2016, although
commencement of the law is expected to be proclaimed on a later
date in 2016.
Once the Bill becomes law, a new class of Cayman Islands entity,
the limited liability company (LLC), will be
available for use in investment funds and other international
structures, and in corporate transactions generally. The LLC
is loosely based on the Delaware limited liability company with
various amendments, resulting in a hybrid between an exempted
company and an exempted limited partnership.
The Bill is the culmination of many months of development in
which Ogier was centrally involved. As practitioners, we are
excited about the potential uses of LLCs and not just in the
investment funds context. The LLC will offer the benefits of
a company in that it will be a body corporate with separate legal
personality and limited liability for its members, while providing
greater flexibility around management and organisation and around
allocation of profits and losses than a company. We therefore
expect the LLC to be a versatile and popular vehicle for many
As proposed, the formation of an LLC will be simple and similar
to that of an exempted limited partnership with only the initial
registration statement required to be filed. The Bill
contemplates the conversion of a Cayman Islands exempted company
into an LLC, merger and consolidation and also the migration of
foreign entities into the jurisdiction to register as LLCs.
Further details will follow about the specifics of an LLC once
the LLC Bill has been enacted into law.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Many people are baffled by trusts, the purpose of which they don't fully comprehend. Some even regard them with suspicion, as tools of of opaque tax evasion strategies of a type favoured by wealthy individuals.
We were recently instructed by a Bank in relation to a regulatory matter. The Bank had made a suspicious activity report to the Financial Investigation Unit ("FIU") due to their concerns about the potential source of funds in an account.
Many of us will have heard the recent claim by Donald Trump in the US presidential election that, if elected, he will ensure that a 1,000 mile border wall is constructed between the US and Mexico...
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).