A Cayman Island law has lately been amended and approved for Cayman Companies and Cayman Limited Liability Companies to generate a register of beneficial ownership (“the Register”).
Cayman companies that meet the criteria under the new legislation are expected to involve their registered agent/corporate service provider to form and maintain the Register.
When will the legislation apply?
The new law will come into effect on 30 June 2017.
Who has access to this information?
All information provided will be regarded in the strictest confidence and will not be available to the public.
Which entities come under the Cayman Islands Beneficial Ownership Register Regime?
All companies that are bound to produce this data are those registered or incorporated by way of continuation under the Companies Law (2016 Revision) and the Limited Liability Companies Law (2016) include: ordinary resident, non-resident companies, limited liability companies (LLC), special economic zone companies, exempted companies, exempted duration limited duration companies and segregated portfolio companies.
What is a ‘Beneficial Owner’?
A beneficial owner is a person who enjoys the benefits of ownership even though title to some form of property is in another name. It also means any individual or group of individuals who, either directly or indirectly, has the power to vote or influence the transaction decisions regarding a specific security, such as shares in a company.
Registrable company beneficial owners typically:
- holds more than 25% of the shares or membership interests,
- directly or indirectly holds, more than 25% of the voting rights,
- has the right to assign or remove the majority of directors or managers,
- if no person meets any of the above prerequisites (1 – 3), has the legal right to implement, or in fact implements, substantial sway or control over the entity, other than only the role of a director or LLC manager, professional advisor or professional manager.
Beneficial owners are bound to provide their particulars to the company for entry into the Register, except where the authority is satisfied. Exemption to compliance maybe granted to those with special reasons, however special reasons are not made public and they are not known in the legislation.
If there are no registrable beneficial owners identified the entity must note on the Register the words “no registrable person identified”.
Penalties and fines could be imposed against beneficial owners that fail to comply with their corresponding requirements under the Register or those which intentionally supply untruthful and dishonest information.
All companies that are incorporated before 30 June 2017, the Cayman Islands government has set a one year extension in order to give existing companies the time to arrange and maintain all the information needed to complete the Register.
For further information please contact your Synergy representative by email firstname.lastname@example.org or telephone +971 4 563 7302.
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