cover_20230904

2023-09-04

【Cross-Border Tax】

CAYMAN ISLANDS: Misled investors can claim from liquidated company

The Grand Court of the Cayman Islands has, for the first time, held that unredeemed shareholders who subscribed for shares in a subsequently liquidated Cayman Islands’ company can bring misrepresentation claims that will rank as unsecured debts ahead of redemption creditors and other members' claims. The decision in Re HQP Corporation Ltd departs from that of the UK House of Lords in Houldsworth v City of Glasgow Bank (1880), which asserted that a person induced by fraud to subscribe for shares can bring no action for damages against the company. It is likely to be of significant impact in liquidation proceedings where equity investment was induced by misrepresentation, though a further appeal is likely.


News Source:【Collas Crill 2023/07/12】

  Back to News