In a recent decision handed down by the Grand Court of the Cayman Islands (Court), some welcome clarification was provided in relation to the scope and application of indemnity clauses for directors of investment funds formed in the Cayman Islands. In a guest article, Nick Hoffman and Conal Keane, partner and senior associate, respectively, at Harneys, provide an overview of the case’s underlying facts, the Court’s holdings and the steps that fund managers should take to ensure that the directors to their Cayman funds have adequate protection under the funds’ respective indemnification provisions. For additional commentary from Hoffman, see “In Madoff-Related Litigation, Cayman Court of Appeal Holds That a Liquidator May Not Adjust a Shareholder’s NAV, Even When Based on Fictitious Profits” (May 17, 2018). For more on issues pertaining to the Cayman Islands, see “Investors in Cayman Funds Have Limited Access to Fund Documents, Records and Information Under Cayman Law” (Dec. 20, 2018); and “How Funds Formed in the Cayman Islands Can Mitigate Legal Risk by Aligning Their Constitutional Documents and Operations” (Oct. 11, 2018).