New Companies Winding up Rules - Order 3: Petitions and Orders
Second in a series considering The Companies Law (2012 Revision) -Companies Winding Up (Amendment) Rules, 2013 [Supplement No. 3 published with Gazette No. 04, dated 25 February, 2013.]
As of 1 March 2013 the Companies Winding-Up Rules in Cayman have been amended. The rules that have been changed are under Orders 3, 8, 9, 11, 15, 19 and 25, and some of the forms have also been changed. We have already looked at the appointment of foreign lawyers by liquidators under O25, here we take a brief look at changes to Order 3.
Order 3: Petitions and Orders
The main changes to Order 3 relate to the applications which need to be made before a petition is issued, endorsements on the petition, and requirements for its service.
Before presentation of a Creditor’s petition (rule 5 (1)), or a Contributory’s Petition (rule 11 (2)) or for presentation of a CIMA petition (rule 14 (1)) the petitioner’s or authority’s attorney must first write to or email the Registrar to apply to have the proceeding assigned to a judge and for either a hearing date (in the case of a Creditor’s petition) or a date for a directions hearing. No Petition is to be issued until the relevant dates have been fixed and endorsed on the Petition or Summons (as appropriate).
The petition and summons for directions need to be served, immediately after the petition has been presented and issued, not just on the company (by delivering it to the company’s registered office) but also every member of the company whom the petitioner has named or intends to name as a respondent to the petition.
Rule 12 adds a requirement to consider service on a person other than the company bearing in mind if the Court considers the Petition raises an issue as against the company or as between shareholders.
Rule 17 requires any winding up order to state which of the powers contained in Part I of Schedule 3 of the Companies Law (2012 Revision) (if any) are given to the official liquidator.