Directors should be aware of the requirements for registration, annual renewal, ongoing maintenance of director information and de-registration, as well as the consequences for failing to meet these requirements.
Under the Cayman Islands Director Registration and Licensing Law ("the Law"), before a director can be appointed to the board of a covered entity, they must be registered or licensed with the Cayman Islands Monetary Authority ("CIMA"). Directors should be aware of the requirements for registration, annual renewal, ongoing maintenance of director information and de-registration, as well as the consequences for failing to meet these requirements.
For a new board appointment, an application for registration under the Law should be made as soon as possible to avoid any delays given appointment cannot take place until registration is completed. Going forward, a director must renew their registration annually by confirming their registration information and paying an annual registration fee by 15 January of each year. During the course of the year, the director is also required to inform CIMA of any changes to their information within 21 days of any such change. Finally, the Law provides a surrender mechanism whereby a director may surrender their registration / license upon ceasing to act for covered entities. The surrender application and accompanying de-registration fee must be filed and paid by 31 December to avoid incurring annual registration fees for the following year.
Failure to register, renew, update director information or de-register by the relevant deadlines may lead to delays, additional fees and / or significant penalties which may include substantial monetary fines and, in some circumstances, imprisonment. As clients continue to look for efficiencies and renew their focus on core business, routine director registration / licensing, renewal and de-registration tasks, while essential, can be time consuming and can create unnecessary operational burdens.
The Maples Group Solution
Through a comprehensive knowledge of the requirements and a longstanding relationship with CIMA, the Maples Group works with directors, who are natural persons and are to be appointed as a director of 20 or fewer covered entities, to compile and submit director information and arrange payment of fees. This helps to streamline the entire process and ensure deadlines are met. Specific services and support includes:
- Initial director registration, submission of application and payment of registration fee;
- Annual director registration renewal and payment of the annual registration fee;
- Information updates when notified by the director of changes; and
- Director de-registration and payment of the de-registration fee.
With investors and regulators increasingly demanding that companies have a proper governance framework in place, the Maples Group offers a comprehensive range of Company Secretarial and Board Support services, including organisation and minuting of formal meetings that helps reduce the administrative burden to allow our clients to focus on their core business objectives. In addition, the Maples Group provides a comprehensive suite of fiduciary, reporting and governance solutions, including the provision of independent and non-executive directors and brings the requisite skills, experience and resources to assist across a variety of areas. With over two decades in the industry, the Maples Group has built its service offering around the needs of the client companies it serves and remains committed to ensuring clients' requirements are seamlessly met and their operations are effectively supported.
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