On 16 December 2016 the Cayman Islands published the Foundations Companies Bill (“the Bill”) which expands the range of business entities currently offered in the Cayman Islands. The Bill sets out the process by which certain existing Cayman companies can become foundation companies (either at the time of their incorporation or at a later date) and sets out provisions governing their constitution, operation, management and winding up together with various other miscellaneous matters. The Bill makes clear that foundation companies will be governed by the Companies Law (except as otherwise provided for in the Bill).
The Bill also grants the Grand Court jurisdiction to deal with cases involving constitutional difficulties of foundation companies and those involving breakdowns in the appointment of directors and supervisors of foundation companies. It is anticipated that the Bill will be passed in the first quarter of 2017 and we will keep you posted on its progress.