From Solomon Harris
A Cayman Islands Monetary Authority appointed Controller under Securities Investment Business Law (2011 Revision) and Banks and Trust Companies Law (2013 Revision) such as that appointed for Caledonian Securities Limited and Caledonian Bank Limited has the following powers:
· The estate of Controlled Entity is to be administered for the benefit of creditors
· To take possession of Controlled Entity’s property
· To recover debts
· To examine Controlled Entity’s books
· To sell all or any part of the property of the Controlled Entity by public auction or tender or private contract, and accept as the consideration to be paid or secured to be paid at such time and in such manner as he thinks fit.
· To carry on the trade of the Controlled Entity as necessary to achieve beneficial winding up or sale of the same
· To bring, institute or defend any action or other legal proceedings
· To prove, rank, claim and draw dividend, in respect of any debt due
· To Settle any and all claims by and against the Controlled Entity
· To execute documents and deeds for and on behalf of the Controlled Entity
· Must account to the Court, and shall be under the control and subject to the directions of the Court from which Controller can seek directions and when acting under such directions the Controller is deemed to have preformed his duty as Controller
· Must keep proper books and records in regard to the administration by him of the Controlled Entity and allow any creditor to inspect them.
· Must pay all sums of money from time to time received by him into a designated account for the Controllership
· To disclaim onerous property but not so as to affect the rights of any third person, who may apply to Court for an order if adversely affected by such disclaimer. Any person injured by a disclaimer becomes a creditor. Property cannot be disclaimed where a notice has been sent demanding an election for disclaimer by the Controller and they have not so elected within 28 days.
· To void settlements and recover preferences and transactions at an undervalue
· To ask the Court to make Orders for the investigation of the Controlled Entity’s affairs.
The position of creditors of the Controlled Entity is:
· Unsecured creditors may prove for debts plus interest and the Controller shall adjudicate such claims and may apply set off for mutual dealings
· A secured creditor may give up his security and prove for his whole debt, or he may prove for any balance due to him after realising or giving credit for the value of his security
· The Controlled Entity, any of the creditors or any other persons, if aggrieved by any act or decision or estimate of the Controller, may apply to the Court of Appeal, and the Court of Appeal may confirm, reverse or vary the act complained of, and may make such order in the matter as it thinks just, and may direct any question of fact or assessment of value or damage to be tried by a jury.
· Dividends payable by the Controller must be noticed and advertised. There is no absolute bard date but a creditor who proves after a dividend has been paid cannot disturb the prior dividend payment.