In the matter of Direct Lending Income Feeder Fund Ltd (in official liquidation) – Judgment - Judgment
Whether original holders of redeemable preference shares who claim damages for deceit but who are unable to rescind their subscription agreements are entitled to prove in the winding up and if they are the ranking in the winding up of such claims and the comparative ranking claims by holders of redeemable preference shares who completed the redemption process before the winding up or who have rights to prove in the winding up under section 37(7) of the Companies Act – the basis for the decision of the House of Lords in Houldsworth and of subsequent English cases including Soden v British & Commonwealth and whether the common law rule derived from these cases is or should be good law in the Cayman Islands – the capital maintenance rule in Cayman company law. Insolvency; Company Law; Investment Funds
| Cause Number | FSD 0108/2019 (NSJ) |
|---|---|
| Court | CIGC (FSD) |
| Judge | Segal J |
| Parties | In the matter of Direct Lending Income Feeder Fund Ltd (in official liquidation) – Judgment - Judgment |
| Judgment Date | 2024-03-13 |
| Subject | Whether original holders of redeemable preference shares who claim damages for deceit but who are unable to rescind their subscription agreements are entitled to prove in the winding up and if they are the ranking in the winding up of such claims and the comparative ranking claims by holders of redeemable preference shares who completed the redemption process before the winding up or who have rights to prove in the winding up under section 37(7) of the Companies Act – the basis for the decision of the House of Lords in Houldsworth and of subsequent English cases including Soden v British & Commonwealth and whether the common law rule derived from these cases is or should be good law in the Cayman Islands – the capital maintenance rule in Cayman company law. Insolvency; Company Law; Investment Funds |
| Filename (current) | 24-03-13-In-the-matter-of-Direct-Lending-Income-Feeder-Fund-Ltd-in-liquidation-Judgment.pdf |
| Statute | Sections cited | Mentions |
|---|---|---|
| Companies Act | 139, 139(1), 140(1), 212(1), 34(1), 34(2), 34 and 37, 37(7), 37(7)(a), 49, 49(g), 8, 13-19, 33-35, 37, 37A and 37B | 39 |
| Contracts Act | 14(1), 14(2) | 3 |
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