News & Insights

Receivers can be Appointed over Segregated Portfolios

A recent case in the Grand Court of the Cayman Islands affirmed that a receiver can now be appointed over segregated portfolios.

In a recent case in the Grand Court of the Cayman Islands it was affirmed  that where one segregated portfolio of a segregated portfolio company is in financial distress but the other segregated portfolios remain unaffected, the Cayman Islands Companies Act (2022 Revision) provides for the appointment of a receiver to the relevant portfolio, without needing to wind up the whole company.

Before a receiver can be appointed over a segregated portfolio, it must be shown that the relevant segregated portfolio is "insolvent" within the meaning of 224(1) of the Companies Act.

For more information on this topic, reach out to your usual Stuarts attorney or contact Chris Humphries at chris.humphries@stuartslaw.com. 

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View profile for Chris HumphriesChris Humphries
Managing Director and Head of Funds

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