Fri, Nov 28, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Post-Weavering - independent or affiliated fund directors?

Friday, October 07, 2011

By Victor Murray, LLB, PG Dip LP, Accredited Director and who has been resident in the Cayman Islands from 2002. He is the Assistant Secretary of the Cayman Islands Directors Association. He is admitted as a Lawyer in New York and as a Solicitor in Scotland. He has considerable offshore fund experience as in-house counsel for Citco and thereafter as a director of many hedge funds.

Following the Weavering decision what should a Cayman Islands fund expect from their directors?

Although the recent Weavering case (Weavering Macro Fixed Income Fund 26 August 2011) did not create any new law, it does provide some insight as to the basic minimum standards that should be expected from a fund director at least by the Cayman Islands Court.

In the Weavering case the directors of the fund were found not to meet basic standards in relation to the discharge of their fiduciary obligations. The judge in the case stated that the Cayman Islands funds industry “…works on the basis that investment management, administration and accounting functions will be delegated to professional service providers and a company’s independent non-executive directors will exercise a high level supervisory role.” There was no evidence of the directors of Weavering asking any questions of any service providers.

The judge further went on to say that the directors of the Cayman Islands fund must:

  • have relevant experience in the review of offering documents to ensure that t......................

    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. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  3. CTAs , event-driven strategies lead hedge funds recovery in mid-November[more]

    Komfie Manalo, Opalesque Asia: November’s performance proves to be in sharp contrast to the previous month, with equities further consolidating their upswing last week, according to the latest Lyxor Asset Management’s Weekly Brief. CTA funds als

  4. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took

  5. Opalesque Exclusive: The unintended consequences of Basel III[more]

    Benedicte Gravrand, Opalesque Geneva: Bijesh Amin, co-founder and managing director of Indus Valley Partners (IVP), a technology solutions and services firm focused on the alternative asset management industry, has recently observed