Tue, Apr 28, 2015
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

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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

  4. Update: Wall Street has strong feelings about Jon Corzine trying to make a comeback[more]

    From Businessinsider.com.au: Former New Jersey Governor Jon Corzine is thinking about starting his own hedge fund, according to the Wall Street Journal, and because of the way his last firm imploded, Wall Street has strong feelings about that. “Truth is the larger seeders would never give him money

  5. Opalesque Exclusive: Cybersecurity and hedge funds - A manager’s experience, Part Four[more]

    Benedicte Gravrand, Opalesque Geneva: Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of

 

banner