Forbes Hare Legal Update

5 July 2013

Legal Updates
Court of Appeal clarifies entitlement of redeemers in respect of distributions in liquidation
By Alistair Abbott

In an earlier newsletter we commented on the decision of Bannister J. in Somers Dublin Ltd & others v Monarch Pointe. The judge decided that redeemed (but unpaid) members of a fund in liquidation ranked equally with the continuing members, i.e. those who had not given notice to redeem. That decision had caused concern in the market because the prevailing view had been that redeemed members ranked ahead of continuing members.

> Read more about this topic on our website
Avoidance claims in the Cayman Islands by a foreign insolvency office holder
By Jennifer Fox

Cross border insolvency law in the Cayman Islands, and more particularly the extent of the assistance that may be available to foreign insolvency office holders, has recently come under the spotlight in the decision of the Grand Court of the Cayman Islands in Irving H Picard and Bernard L Madoff Investment Securities LLC v Primeo Fund[1].

> Read more about this topic on our website
[1] (Jones J, 14 January 2013).
Dissolving partnerships and staying proceedings in favour of arbitration in the BVI
By Alistair Abbott

Two recent decisions of the BVI Commercial Court illustrate some important points in relation to the court's power to stay proceedings in favour of arbitration.

> Read more about this topic on our website
BVI trust law update
By Peter Goddard

New trust legislation in the BVI has broadened the range of trust options available to private clients and enhanced BVI trust legislation by making some welcome modifications that increase the attractiveness of BVI trusts as part of international wealth planning and financial structures.

> Read more about this topic on our website
Marketing of BVI and Cayman alternative investment funds in the EU - further steps taken towards AIFMD compliance
By Catherine Ross

The Alternative Investment Fund Managers Directive (AIFMD) comes into force on 22 July 2013 and is the outcome of a G20 consensus for closer regulatory oversight of the alternative investment funds sector, including hedge funds, private equity funds and real estate funds. Once in force, the AIFMD will primarily affect EU-based alternative investment fund managers (AIFMs) and non-EU AIFMs managing EU domiciled funds. However, any non-EU manager looking to continue marketing their BVI or Cayman Islands investment funds to professional investors within the EU will also be caught and will need to comply with certain provisions of the AIFMD.

> Read more about this topic on our website
Recent Developments
Key contacts
Litigation and insolvency

William Hare

Partner and Head of Litigation
DD +1 284 494 1 890

Chris Young
Partner and Head of Cayman Litigation
DD +1 345 94 3 7703

Robert Nader
Litigation Partner
DD +1 284 494 18 95

Alistair Abbott

Litigation Partner
DD + 44 203 178 8174
Corporate and Funds

Jose Santos

Partner and Head of Corporate
DD +1 284 494 1899

Catherine Ross
Partner and Head of Funds
DD +44 203 178 8176
Forbes Hare Trust Company

Peter Goddard

Executive Director
DD +1 345 815 0707
E mail
Forbes Hare