Nov 2015
CAYMAN ISLANDS
GRAND COURT
WINDING UP PETITION – APPLICATION BY SHAREHOLDERS TO STRIKE OUT PETITION ON GROUNDS DIRECTORS NOT AUTHORISED
The Grand Court of the Cayman Islands confirmed, in a decision by Mangatal J, that the directors of a company do not have statutory authority to petition the Court to wind up the company (whether the company is solvent or insolvent) without the sanction of a resolution of shareholders, unless the articles of association of the company expressly provide otherwise.
In this case a winding up petition, submitted by the directors of the company, was struck out for lack of standing to file the petition.