The Cayman Islands has a British parliamentary style of democracy. This comprises an elected Legislative Assembly, an Executive Council and an independent Judiciary. The Executive Council is composed of elected and official members and forms the Government of the Cayman Islands. The official members are appointed by the Governor, and the elected members who form the majority are chosen by the Legislative Assembly.

Her Majesty's Government in the United Kingdom appoints the Governor. The Governor presides over Executive Council and must take the Council's advice on all matters other than defense, external affairs, external security, the police and the civil service.