Changes to certain corporate disclosure requirements in the Cayman Islands became effective on 8 August 2019 (or at a later stage as noted below) pursuant to the Companies (Amendment) Law, 2019 and the Limited Liability Companies (Amendment) Law, 2019 (Amendments).
The Amendments make certain information relating to companies and limited liability companies more accessible and increase penalties for those who fail to fulfil the requirements of the beneficial ownership registration.
The Registrar of Companies in the Cayman Islands is required to provide information upon receipt of a written request from the Anti-Corruption Commission, the Cayman Islands Monetary Authority, the Financial Crimes Unit of the Royal Cayman Islands Police Service, the Financial Reporting Authority, the Tax Information Authority and any competent authority (as defined in the Proceeds of Crime Law) which is assigned responsibility for monitoring compliance with money laundering regulations under the Law. The information must be required to discharge any function or exercise any power of the requesting authority under specified laws.
The following Laws have been amended to require the following:
- the register of members will now disclose:
- the number and category of shares held by each member; and
- a statement about whether each relevant category of shares held by any member carries "voting rights" and, if so, whether such rights are conditional.
- If any changes in the directors or officers, the Company is required to notify the Registrar of Companies within 30 days of the change.
- The Registrar of Companies will make a list of directors and alternative directors of a Company (if any) for public inspection upon payment of USD 50 (this provision is not yet in force).
Limited Liability Companies Law
- The Registrar of Companies will make a list of the managers of an LLC available for inspection by any person (upon payment of the prescribed fee) (this provision is not yet in force).
Given the popularity of Cayman exempted companies in Asia, corporate service providers and their clients need to be aware of the changes to the Companies Law in particular and re-assess how these companies are administered.
Once the provisions relating to public inspection of a company's list of directors and alternate directors (if any) and an LLC's list of managers come into force, we will provide a further update.
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.