Thu, Oct 2, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
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

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. Legal - Court throws out lawsuits related to Fannie Mae, Freddie Mac profits, Insider case by SEC is a step removed from Herbalife itself, SEC grants Citigroup waivers, easing hedge-fund curbs[more]

    Court throws out lawsuits related to Fannie Mae, Freddie Mac profits From WSJ.com: A group of Wall Street investors on Tuesday suffered a blow in their attempts to sue the federal government over their treatment of the shareholders of mortgage finance giants Fannie Mae and Freddie Mac af

  2. Launches - Goldman Sachs Asset Management launches GS Long Short Fund, Western & Southern launching international hedge fund, Lansdowne Partners plans energy hedge fund, RBC Global Asset Management launches new RBC Funds (Lux) - Asia Ex-Japan Fund, PVE Capital latest credit strategy to launch on the Sciens managed account platform[more]

    Goldman Sachs Asset Management launches GS Long Short Fund From Marketwatch.com: Goldman Sachs Asset Management has announced the launch of the Goldman Sachs Long Short Fund, which pursues high conviction investment ideas in global equity markets through a fundamental, bottom-up approach

  3. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is

  4. Opalesque Exclusive: Institutions eye private credit over traditional fixed income[more]

    Bailey McCann, Opalesque New York: Investing in private insurance, realty tax receivables, or investment-grade short-term accounts receivable may not spring to mind as a means of mitigating risk in a portfolio, but one firm, New York-based BroadRiver Asset Management is out to change all that. Th

  5. Short-term trading quant fund beats S&P since '09[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A relatively new multi-strategy, market-neutral quantitative hedge fund has managed to outperform the S&P500 and the HFRX Global since 2009. New Jersey-ba