Thu, Jun 20, 2013
A A A
Welcome Guest
Free Trial RSS
New! Family Office and Investor Database with 11,750 contacts
Alternative Market Briefing

Other Voices - Should indemnity provisions extend to auditors?
Thursday, September 02, 2010

This article was authored by Alric Lindsay, a Cayman-based independent director, who prior to his experience working as an investment funds attorney for two global law firms, was a senior compliance analyst with the Cayman Islands Monetary Authority:

Indemnity provisions are prevalent in the articles of association of Cayman domiciled investment funds. Such provisions may exonerate a director and/or officer from personal liability or restrict the persons who can be sued, however, the writer queries whether the terms should also apply to auditors.

The application to auditors, as discussed in various cases, may depend upon how the draftsman prepares the articles of association of a company and how the Cayman courts interpret the same. For example, there are some instances where the wording refers to every director and officer of the company as an "indemnified person". However, where it is not stated that the auditor is not an officer, it might be implied from the articles that the auditor is an officer.

Other draftsmen include express statements that "for the avoidance of doubt, "officer" does not include the auditors of the company". Presumably, the approach will vary depending on what is intended in each case.

To understand how some of the highest courts may read the clause, it is helpful to look at one of the well-known Privy Council decisions which addressed indemnity provisions. In Viscount......................

To view our full article Click here
Article link
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. GAIM delegates hear fund of funds fees are increasingly discounted[more]

    Beverly Chandler, Opalesque London: Reporting from the GAIM conference in Monaco, CooConnect finds that funds of funds are taking action over their fees. The site writes: "Funds of funds have insist

  2. Multifonds’ white paper reflects on the likely impact of AIFMD[more]

    Beverly Chandler, Opalesque London: Investment software provider Multifonds has published its white paper, entitled: The impact of AIFMD and convergence survey. Key findings from the survey include: 83% of respondents agree convergence o

  3. Swiss funds increased by CHF 100bn ($829bn) year on year[more]

    The Swiss Fund Association has announced that in May 2013, the volume of assets placed in the investment funds covered by the statistics compiled by Swiss Fund Data AG and Lipper reached around CHF 763 billion, a slight rise of CHF 2.6 billion month-on-month. This represents a marked increase of jus

  4. GAIM Conference – Hedge funds brace for renewed debt crisis, Hedge fund managers don hairshirts and ‘impact investing’ at Monaco meet[more]

    Hedge funds brace for renewed debt crisis From Indiatimes.com: The euro zone's debt crisis may be far from over, while Japan's money-printing gamble to revive its economy could destabilize global markets if it doesn't work, some hedge fund managers say. They are taking the view that the

  5. Trading species for conservation: "Mitigation Banking makes it possible for real estate developers to turn biodiversity into an asset instead of a liability - which ultimately makes it possible to preserve that biodiversity across the United States."
Click here for More about Opalesque Tracking
- A new, unique Premium Service -
  1. Carlson
  2. Peak 6
  3. One William Street
  4. Securis
  5. Haymarket
  1. man group
  2. managed account
  3. Ucits
  4. asian hedge fund
  5. global macro