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Managing Your Cayman Business and Transactions During the COVID-19 Pandemic

Conyers recognises the strains that are being placed on our clients during the present COVID-19 crisis. We would like to reassure you of our continued support and provide an update on the operation of our Cayman office and international business support in the jurisdiction.  In these exceptional circumstances you are likely to encounter practical challenges, in the handling of business transactions and the day-to-day running of your operations. We have set out some guidance on such matters.

Conyers’ Cayman office

Our dedicated attorneys and administrators are working normal hours, but are now working remotely. Our systems and processes are designed to securely support this type of working environment, which enables us to ensure that our clients’ interests continue to be protected and advanced in these difficult times, whilst prioritising the safety and well-being of our people. Please see a link to our update of 31 March which provides additional details in respect of the regulations and restrictions in effect in the Cayman Islands.

Meetings and Economic Substance Requirements

Cayman currently has a soft curfew in place which requires all non-essential workers to “shelter in place” other than for very limited purposes.  Gatherings or events involving more than two persons are not allowed.   In addition, board members and advisors who would ordinarily travel to Cayman in order to participate in meetings are being prevented from doing so for at least the next several weeks. However, meetings should continue to be held by audio or video conferencing. Notice of meetings should be given to all directors, and other formalities observed, in the usual way. Directors of Cayman companies are advised to examine their constitutional documents to determine if meetings may be held by telephone or video-conferencing link.

Where board of director meetings are required to be held virtually due to the measures put in place to combat COVID-19, the Cayman Department for International Tax Cooperation (DITC) will take this into consideration when determining whether an entity has passed or failed the economic substance test in its reporting due in 2021.  However, it is noted that the requirement to be directed and managed in Cayman is only one element of the economic substance test and that an entity that is within scope is also required to conduct core income generating activities in relation to its relevant activity.

 

To continue reading full articles in PDF format:
Managing Your Cayman Business and Transactions During the COVID-19 Pandemic

 


Alan Dickson
Partner

Cayman Islands   +1 345 814 7790


Maree Martin
Counsel and Head of Knowledge Management - Cayman Islands

Cayman Islands   +1 345 814 7781


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