Parliament to Hear How Companies Amendment Bill will Enhance Financial Services

Deputy Premier and Minister for Financial Services and Commerce, the Hon. André Ebanks, will present the Companies (Amendment) Bill, 2024 to enhance financial services at the next meeting of Parliament on 26 February.

The Companies (Amendment) Bill, 2024 was gazetted today in line with the normal 28-day public notice period. The Bill enhances Cayman’s product offerings by introducing the following innovative commercial enhancements:

• a new procedure for reducing share capital in certain circumstances that will lower costs for companies and reduce the time involved for the process;

• provision of a more flexible approach for the passing of a written special resolution, to allow the resolution to be passed by a majority (of at least two-thirds of the company’s members) rather than unanimously; and

• conversions of a limited liability company or foundation company to an exempted company, to provide flexibility for Cayman structures dealing with changes in circumstances, as well as re-registration of an exempted company as an ordinary company.

“I’m pleased to present this Bill to enhance our financial services offering for local and international stakeholders, as we continue to thrive as a globally respected financial services centre of excellence, in the face of changing market dynamics,” the Deputy Premier said.

Two other bills published towards the end of 2023 will also be presented by the Deputy Premier at the next meeting of Parliament:

• the Local Companies (Control) (Amendment) Bill, 2023; and

• the Merchant Shipping Bill, 2023

The Local Companies (Control) Amendment Bill, 2023 allows Cabinet to set prudential matters expressly, such as fee allocations, with regards to local companies control licensing. The Merchant Shipping Bill, 2023 provides updated provisions which brings the country’s maritime legislative framework in line with current international standards and requirements.