Cayman corporate directors

A surprisingly large number of funds domiciled in Cayman use corporate directors only. What does that mean for the governance of these funds?

Over the last 8 years The NED has published large numbers of articles on every aspect of fund governance imaginable, with one exception it seems: corporate directors. Until we undertook our review of Cayman fund boards, in The NED’s December issue, we had no idea that they are used as extensively as they are in this jurisdiction. (Outside the Caribbean they are hardly used at all, other than in the US.)

According to the SEC’s ADV filings there are 17,120 funds, from approximately 1,000 promoters, domiciled in Cayman. Only a minority of these promoters use individual as opposed to corporate directors for their fund boards.

To read more on this story see the January issue of The NED.