The Cayman Islands Monetary Authority (CIMA) has recently updated its guidelines for how corporations should monitor and conduct their everyday operations. The update, announced in 2023, remains cogniscent of the facts that while there is no universally-applicable solution, the directors of the board must enforce the fund’s memorandum, note existing laws, and heed established rules and articles of association, such as those involving Corporate Governance and Internal Controls.
The refined directives are meant to work in congruence with the Statement of Guidance – Corporate Governance for Mutual Funds and Private Funds (the SOG). This document, along with the latest rules on Corporate Governance and Internal Controls, underlines the responsibilities that directors must implement while conducting their duties.
The guidelines, however, do not exist in isolation and are meant to be used in coherence with the established legal framework. Hence, it is imperative for directors and other stakeholders to have a deep understanding of these established norms. This includes familiarising themselves with not just the changes but also their implications on the day-to-day functioning of the organizations.
Directors are obliged to ensure that the guidelines are followed to the letter, thus reinforcing the overarching obligations on them to fulfill their duties responsibly, with persisting integrity, and with the best interests of their organization in mind.
For a closer look at these updated guidelines, readers can access them through the following link provided by Walkers via JD Supra.