Update

Contributories winding up petitions: nullity and the ability to substitute a petitioner

In a recent decision delivered by the Honourable Mr Justice Segal, the Grand Court of the Cayman Islands has expressly considered the issue of whether a contributory's winding up petition filed by a petitioner who did not have legal standing to petition is null and void; and, if not, whether the court has an inherent jurisdiction to substitute a petitioner to cure such a defect.

The decision of Mr Justice Segal has significant implications for a company's members (and those asserting to be its members) wishing to present a petition to wind up a company on just and equitable grounds where the shares are not registered in the petitioner's name and were not for at least six months prior to presentation of the petition.