All posts by hsmoffice
HSM is proud to be ranked by The Lawyer as one of the Top 30 Offshore Law Firms for 2021 and be featured in The Lawyer Magazine July 2021 edition.
HSM is listed within their Top 10 Headcount Growers, highlighting HSM’s increase in Partners over the past year. HSM has also been listed in their Top 10 Most Diverse Firms for having the second highest ratio of female to male Partners.
This ranking highlights HSM’s ability to continuously grow while valuing diversity and inclusion to create a dynamic workforce in the offshore legal industry.
In addition, the HSM Group was mentioned for its acquisition of the Cayman based corporate services operations of Higgs & Johnson.
The HSM Group is delighted to once again offer their summer internship programme and has welcomed five students from the Cayman Islands Further Education Centre (CIFEC).
Jaysie Allen, Destiny Russell, Shyanne Stewart, Paris Jackson and Jahzarah Bush have joined the HSM team for the summer. As a full-service law firm in the Cayman Islands, HSM provides interns with a variety of practice areas including Corporate Services, Debt Collection, Immigration and Intellectual Property.
The summer internship falls shortly after an 8-month long work experience scheme with the CIFEC programme. HSM’s summer internship will enable these students to gain valuable experience and develop the necessary skills required to evolve onward with their future careers while making meaningful contributions to the firm.
“Seeing students so eager to apply and advance themselves is truly refreshing to witness,” shares HSM Managing Partner, Huw Moses OBE. “The arrival of the summer interns is highly anticipated each year and our team aims to instill lifelong skills and valuable work experience into each intern to help shape them into young working professionals.”
HSM is an avid supporter of the CIFEC programme and will be participating at CIFEC’s annual career fair in September. HSM has supported the CIFEC programme since they opened their doors in 2012 and employs seven CIFEC graduates full-time.
(L-R): Shyanne Stewart, Jaysie Allen, Paris Jackson, Jahzarah Bush and Destiny Russell.
HSM IP is honoured to be in the Top 10 Trademark Firms in the Trademark Lawyer Magazine Law Firm Rankings 2021/22 for the entire Caribbean region.
This Top 10 ranking highlights HSM IP’s dedicated and continuous contributions to the world of Intellectual Property in the Caribbean. HSM IP is led by Huw Moses (Managing Partner) and Sophie Peat (Partner) and continues to expand its client base year to year.
The Trademark Lawyer Magazine is a well-established and recognised brand within the global IP community. The Trademark Lawyer Magazine list of the Top 10 law firms for the Caribbean region is based on research they conduct and feedback received from other firms and brand owners.
The HSM Group is delighted to welcome back The Hon. Robin McMillan to their ever-growing law practice.
With a wealth of experience under his belt, Robin is a well experienced and skilled Senior Counsel. In recent years, Robin has served as a Judge of the Grand Court dealing with both interlocutory hearings and trials in the areas of insurance law, corporate insolvency and restructuring, funds investment law, family law and criminal law.
Robin has previously served on Cayman Law Society Committees where he was actively involved in various areas, along with overseeing a sub-committee of the Financial Services Division Users Committee. Robin continues to sit as a Judge occasionally. From 1974 to 1998, Robin was called to the bar in many different countries around the world including England and Wales, Bermuda, Northern Ireland, Hong Kong, California and the Cayman Islands.
HSM Managing Partner, Huw Moses, OBE notes: “Robin brings years of valuable and extensive experience to the firm. We are excited to have him as a highly respected addition to our team and look forward to growing the firm with him.”
Most clients are now relatively familiar with the Cayman Islands Economic Substance regime requiring real economic substance for certain entities (known and ‘Relevant Entities’) carrying or certain activities (known as ‘Relevant Activities’).
Our firm’s previous article on the introduction of the International Tax Co-operation (Economic Substance) Act (the ‘ES Law’) can be found here.
The recent enactment of the International Tax Co-operation (Economic Substance) (Amendment of Schedule) Regulations, 2021 (‘ES Regulations’) on 29 June 2021 has now expanded the scope of the ES Law to include the following entities in the definition of Relevant Entities:-
- A partnership (as defined under s.3 of the Partnership Act (a Revised)) except where the partnership is a local partnership;
- An exempted limited partnership (as defined under s.2 of the Exempted Limited Partnership Act (as Revised)); and
- A foreign limited partnership registered in the Cayman Islands under s.42 of the Exempted Limited partnership Act (as Revised)) (together with the other types of partnerships referenced above hereinafter referred to as the ‘Partnerships‘).
Based on this expansion of the definition of Relevant Entities it should now be noted that any Partnerships carrying on a Relevant Activity will now need to have the requisite economic substance in the Cayman Islands, be able to pass the Economic Substance Test (the “ES Test”) and make the necessary annual Economic Substance filings.
Albeit for the above a Partnership will not be a Relevant Entity and will not be required to pass the ES Test if it is:
- an investment fund or an entity through which an investment fund directly or indirectly invests or operates;
- tax resident outside of the Cayman Islands; or
- a local partnership (where two persons or more carry on a business in common with a view of profit that is not part of an MNE Group (for tax purposes) and such partnership is only carrying on business in the Cayman Islands.
Compliance Timeline
The International Tax Co-operation (Economic Substance) (Prescribed Dates) (amendment) Regulations have introduced a transition period for compliance.
Partnerships formed on or after 1 July 2021 will be required to meet the ES Test from the date on which they commence their Relevant Activities. Partnerships formed prior to 1 July 2021 must satisfy the Test from 1 January 2022.
Partnerships operating as investment funds and partnerships tax resident outside of Cayman will only need to submit the usual ES Notification the Authority.
Key Contact:
Peter de Vere (Head of Corporate and Commercial)
pdevere@hsmoffice.com
Tel: +1 345 815 7360
As we draw closer to the end of 2021, many clients will be considering their Cayman Islands company structures and querying whether any entities are surplus to requirements.
The desire to wind up any Cayman entities before the end of the year is fueled primarily by the need to avoid any annual fees for the maintenance of the Company being incurred next year.
To avoid those fees the voluntary liquidation of a Cayman Company would typically need to commence in late November early December (at the latest) with the final meeting being held before the end of January.
This timetable results in an effective dissolution date into the next calendar year, while still avoiding the government fees for that year.
If a dissolution is not completed (i.e. if the final return is not filed) by 31 January then the full annual return fees for the new-year are due and payable to the Cayman Islands Government.
For a Cayman company to be dissolved by 31 December (and receive a 31 December date on a certificate of dissolution) its voluntary liquidation will need to have commenced before 30 August (assuming a zero balance sheet liquidation). If the liquidation is more complicated then more time would be required and an even earlier start date would be necessary. It is important to note that the Companies Act (as Revised) stipulates that a company is dissolved upon the expiration of 3 months from the registration of the final return and this timing must be considered if a 31 December (or earlier) dissolution date is required.
The above timing considerations also come into play if there may be increased operational efficiencies in completing the dissolution within the current calendar year (if additional regulatory filings and other costs for stub years can be avoided).
For example, investment funds that are registered with the Cayman Islands Monetary Authority (“CIMA”) may need to consider an earlier commencement date to ensure that the final audited financials are completed and filed with CIMA prior to the final meeting of the Fund. CIMA requires that a Fund undertakes a final audit for the period either up to the date of the appointment of the third party liquidator or to the date of the full payment of the final redemptions.
Strike Offs
The option to strike off a company remains an attractive (and cheaper) option for many clients whose companies do not have an active history of trading or were set up only to hold a single asset.
Whilst a strike off does not entail the process of appointing a liquidator and carrying out a formal liquidation it should be remembered that a) the Registrar only strikes off companies in batches at the end of each financial quarter and as such if a year-end dissolution is required then a strike off application should be filed ideally no later than November and b) a strike off remains reversible within a 10 year time frame and should not be viewed as having the same finality of a formal liquidation.
Conclusions
HSM Chambers has a wealth of expertise in advising on both voluntary liquidations, official liquidations and strike offs. We can accept liquidator appointments and would be happy to provide a fee quote for any of your dissolution needs.
Key Contact
Peter de Vere
Head of Corporate and Commercial
Tel: 1 345 815 7360
pdevere@hsmoffice.com
HSM is delighted to yet again be ranked by Benchmark Litigation Latin America 2021 where they have recognized HSM Managing Partner Huw Moses, HSM Partner Adam Crane, HSM Partner Sarah Allison and HSM Consultant William Helfrecht as ‘Litigation Stars’. In addition, Benchmark Litigation Latin America 2021 has also recognized HSM Partner Kerrie Cox as a ‘Future Star’.
Benchmark Litigation Latin America shares:
“The George Town, Cayman Islands-based full-service law firm HSM is among the fastest growing firms in the region and maintains a strong presence in the country and beyond, servicing legal needs throughout the Caribbean. The firm provides premier legal services in an abundance of practice areas, such as dispute resolution, insolvency and restructuring, immigration law, trusts and private client, labor and employment, corporate services, and intellectual property to name a few. The firm’s legal team is equipped with strategic relations with leading firms across the United States, Europe, Asia, Australia, and Canada as well as engaging in regular collaboration with leading attorneys in the US, the United Kingdom, and Australia with the express purpose of providing counsel of the highest possible caliber. In both 2019 and 2020, the firm was named one of Benchmark Latin America’s Recommended Firms for the region.
The firm’s leadership presents a diversity of legal backgrounds. Managing Partner Huw Moses has extensive experience and high-caliber expertise in the practices of labor and employment as well as in commercial and civil litigation. In March of 2021, the firm promoted Adam Crane from the position of senior associate to partner and head of the firm’s insolvency department. In addition to Crane’s subject matter expertise in insolvency, he also specializes in restructuring and commercial litigation.”
HSM is pleased to announce the elevation of Adam Crane to Partner and Head of HSM’s Insolvency and Restructuring team, effective 1 June 2021.
Adam focuses his practice on commercial litigation, insolvency and restructuring matters acting for insolvency practitioners, shareholders, directors, officers and companies; and routinely represents clients in complex cross-border proceedings. He has worked on some of the largest and most prominent disputes and insolvency matters in the Cayman Islands in recent years.
He has consistently been recognized for his litigation prowess by Benchmark Litigation (Latin America) as a Star in 2020 and Future Star in 2019, in Benchmark Litigation (Canada) as a Future Star in 2018, and was named to Benchmark Litigation’s 40 and Under Hot List (Canada and USA) in 2018 and 2017.
In 2020, Adam was inducted to the International Insolvency Institute’s NextGen Leadership Program and appointed to the program’s Executive Committee in late 2020. Adam holds leadership positions and is actively involved with many international insolvency organizations including the American Bankruptcy Institute, INSOL, Turnaround Management Association and RISA Cayman.
HSM Managing Partner, Huw Moses, OBE shares: “Adam will make an excellent addition to the partnership team at HSM and I wish him every success in this new role at HSM.”
HSM IP and Sophie Peat have been recognised in the 2021 edition of IP Stars by Managing Intellectual Property (IP). These 2021 rankings cover more than 80 jurisdictions and HSM IP is listed as a recommended firm in the Caribbean.
Managing IP is a leading specialist guide to intellectual property law firms and practitioners worldwide. They have been researching and ranking firms since 1996. Firms and individuals are chosen based on merit through a rigorous research process and cannot buy entry into this award body.
“I could not be more proud of this achievement and I am honoured to be recognised, along with HSM IP as IP Stars 2021.” shares HSM IP Partner, Sophie Peat.
HSM IP specialises in the Caribbean, Central and Latin America and offshore jurisdictions. Our broad perspective, practical approach and wealth of international experience allow us to offer unique insight into intellectual property issues globally.
The HSM Group has welcomed Travis Ritch to their growing law practice.
Travis has over 10 years of legal experience with a wide-range of skills in the practice areas of Litigation, Public and Administrative Law, Company, Insolvency, and Employment Law. Prior to beginning his career, Travis graduated from King’s College, London (LLB) and was previously educated in the Cayman Islands, Massachusetts, USA and Ontario, Canada.
In 2011, Travis was called to the bar in England and Wales after completing the Bar Professional Training Course at City Law School. He was subsequently called to the bar in the Cayman Islands in 2015 and joins HSM having previously practiced with Ritch & Conolly.
Travis has worked on a number of high-profile insolvency and litigation matters in the Cayman Islands. Travis has been a trusted adviser to several statutory authorities. Since 2016 he has served as Deputy Chairman of the Planning Appeals Tribunal.
HSM Managing Partner, Huw Moses, OBE notes: “Travis is a valued addition to our team. With extensive experience and having grown up in the Cayman Islands, he brings a deep understanding of the local legal landscape. We look forward to strengthening our firm with him.”
Fatal error: Uncaught Error: Call to undefined function twentythirteen_paging_nav() in /home/clients/d17af2243e6f179e393695ba6e9ce04e/hsmnew/wp-content/themes/hsm/author.php:52 Stack trace: #0 /home/clients/d17af2243e6f179e393695ba6e9ce04e/hsmnew/wp-includes/template-loader.php(86): include() #1 /home/clients/d17af2243e6f179e393695ba6e9ce04e/hsmnew/wp-blog-header.php(19): require_once('/home/clients/d...') #2 /home/clients/d17af2243e6f179e393695ba6e9ce04e/hsmnew/index.php(17): require('/home/clients/d...') #3 {main} thrown in /home/clients/d17af2243e6f179e393695ba6e9ce04e/hsmnew/wp-content/themes/hsm/author.php on line 52