If you are not a lawyer, you may find this next sentence very good
news. We are entering a period in human history in which we are going to
need fewer lawyers, at least the traditionally trained variety.
In a recent judgement of the Grand Court in the matter of FIA
Leveraged Fund (unreported, Grand Court, 18 April 2012), the Court has
laid down some general principles applicable to the in kind or in specie
distribution of fund assets to redeemed investors and the proper
exercise by directors of the power and discretion to make payments in
I expect the worst financial scandal in the history of the Cayman
Islands to unfold in the coming months. The amount in dispute is likely
to exceed half a billion dollars and the ensuing litigation has the
potential to clutter up the jurisdiction’s Grand Court for many years.
The courts in both the Cayman Islands and the British
Virgin Islands have recently handed down a number of judgments focused on the
liquidation of hedge funds and the circumstances in which it is just and
equitable for funds to be wound up on a petition by one or more shareholders.
On 13 December 2010 the Privy Council delivered its judgment in Re
Strategic Turnaround Master Partnership Ltd. The case concerned the
ability of a fund to suspend the redemption of shares and the payment of
It is not uncommon to hear statements to the effect that the rules of
the court are intended to be complied with, and not intended to be mere
‘targets’ towards which to aspire.
The increasing number of challenges has been evident and there have
been four cases on the subject of residence and domicile in the same
number of months. This article looks first at three cases involving
persons leaving the UK and second at a person coming to the UK.
The court upheld the decision of the Court of Appeal and, applying the ex turpi causa non oritur actio (ex turpi causa in brief) principle, struck out summarily the claim against the auditors Moore Stephens of the company Stone Rolls
Fallout from the sub-prime credit crisis, the Bernard Madoff affair and recent events in the banking and finance sector have had a severe impact on the hedge fund industry leaving many offshore funds facing substantial redemption requests with insufficient liquidity to meet them.