MFA submitted a comment letter to the Cayman Islands’ Ministry of Financial Services and Commerce on the draft Companies (Amendment) Bill, 2024 (Proposed Amendment).
The comment letter states that MFA is deeply concerned that the Proposed Amendment would have a deleterious impact on the rights of shareholders of Cayman Islands companies because it would leave shareholders with as few as 20 days to exercise their appraisal right from the time of the merger announcement, without enough time to assess the merits of the merger, receive information, or even complete the administrative steps necessary to exercise their appraisal right.
MFA urges the ministry to:
- Continue to subject mergers of public companies to a shareholder vote; and
- Retain the ability of shareholders to submit a notice of objection to exercise their appraisal right until the date of the shareholder vote—or, alternatively, until no earlier than the date 150 days following the merger announcement.
