Re Bernard Madoff Inv Secs
| Jurisdiction | Cayman Islands |
| Judge | (Jones, J.) |
| Judgment Date | 05 February 2010 |
| Court | Grand Court (Cayman Islands) |
| Date | 05 February 2010 |
(Jones, J.)
Ms. S. White for the petitioner.
Companies Law (2009 Revision), s.241(1): The relevant terms of this sub-section are set out at para. 2.
Companies-liquidators-recognition of foreign liquidator-recognition under Companies Law (2009 Revision), s.241(1)(a) convenient way of establishing foreign liquidator”s sole right to act generally for foreign company in Cayman Islands, if validly appointed under law of place of company”s incorporation
The petitioner sought a declaration recognizing his right to act in the Cayman Islands on behalf of Bernard L. Madoff Investment Securities LLC (‘BLMIS’).
The petitioner was appointed trustee for the liquidation of BLMIS in a US bankruptcy court. He commenced proceedings against a Cayman company, and it was likely that he would wish to commence further proceedings against other Cayman entities.
The petitioner applied for a declaration under s.241(1)(a) of the Companies Law (2009 Revision) recognizing him as the sole person having the right to act on behalf of BLMIS in the Cayman Islands.
Held, granting the application:
The court would make the declaration sought under s.241(1)(a) of the Companies Law (2009 Revision). Given that the petitioner had already commenced proceedings against one Cayman entity and it was likely that more would follow, such a declaration would be appropriate since the purpose of the provision was to provide a foreign bankruptcy trustee or liquidator with a convenient way of establishing his right to act on behalf of a debtor universally within the Cayman jurisdiction (rather than on a
case-by-case basis). Moreover, the court would recognize the law of a company”s place of incorporation in all matters concerning the constitution of a company, including the identity of those authorized to act on its behalf as bankruptcy trustee or liquidator. Since his appointment as trustee had given him powers and duties equivalent to those of an official liquidator under Part V of the Companies Law (2009 Revision), the court would make a declaration recognizing the petitioner as the sole person having the right to act on behalf of BLMIS in the Cayman Islands (paras. 3–6).
1 JONES, J.: This is a petition by Irving H. Picard in his capacity as trustee of Bernard L. Madoff Investment Securities LLC (‘BLMIS’) by which he seeks a declaration pursuant to...
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