Several vehicles can be used to establish funds in the Cayman Islands: unit trusts, limited partnerships, limited liability companies
and – the most popular vehicle by far – exempted companies. The Cayman Islands Companies Law, which governs exempted companies, does not grant company members a freestanding right to inspect the accounts, books and records of the company or otherwise to obtain information concerning company affairs. Questions therefore arise about how, if at all, that restriction on access can be overcome, and what, if any, other remedies may be available to members. In a guest article, Paul Smith and James Eggleton, partner and associate, respectively, at Harneys, discuss the rights of members of exempted companies to access company documents and information concerning company affairs. For analysis of a Cayman fund investor bringing suit against the fund in the U.S., see “New York Court of Appeals Decision Eases Path for Investor Lawsuits Against Cayman Funds, but Certain Hurdles Remain
” (Dec. 7, 2017). For additional commentary from Harneys partners, see “How Fund Managers Can Navigate the E.U. General Data Protection Regulation and the Cayman Islands Data Protection Law
” (Aug. 9, 2018); and “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).