The highly anticipated Limited Liability Companies Law, 2016
(LLC Law) was published in the Cayman
Islands on 8 June 2016 and is expected to come into force by a
separate commencement order in late June.
The introduction of the new Cayman Islands limited liability
company (an LLC) satisfies the demands of
stakeholders, in particular in North America and Asia, for a more
flexible corporate offshore structure and provides a welcome
addition to the existing range of corporate vehicles available in
the Cayman Islands. The LLC is closely aligned with the Delaware
limited liability company and is expected to be popular as a
vehicle of choice for investment fund and private equity
structures, as well as corporate transactions, including joint
ventures, special purpose vehicles and holding companies, where the
LLC structure can be tailored to suit the particular
The LLC Law provides for the formation and operation of an LLC
in the Cayman Islands, as a body corporate with limited liability
and separate legal personality from its members. The LLC Law also
provides for the conversion or merger of existing Cayman Islands
exempted companies into LLCs and the continuation into the Cayman
Islands as an LLC of entities established in another jurisdiction.
Please see our legal update dated 7 January 2016, which sets
out the key features and characteristics of the new LLC.
We will provide a further update once the date of entry into
force of the LLC Law is confirmed. If you have any feedback,
questions or comments please do not hesitate to contact one of the
authors or your usual Harneys contact.
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.
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