Cayman Islands: Contracts and Commercial Law

A High Court ruling examines the cross-border application of section 423 of the Insolvency Act 1986 in enforcing English arbitration awards, while establishing critical boundaries for the Marex tort in asset recovery disputes. The decision addresses whether offshore restructurings undertaken before arbitral awards can be challenged under English law when assets are allegedly moved to frustrate enforcement.

Part VII of the Cayman Islands Trusts Act (2021 Revision) (Trusts Act) permits the creation of a special type of trust, commonly known as a 'STAR trust', which is unique to the Cayman Islands.

The Judicial Committee of the Privy Council in Tianrui v China Shanshui has held that a shareholder has a personal right of action against a Cayman Islands company to challenge the improper issue and allotment of shares by that company's directors.