(Hedge Fund Law Report) In a recent case, a Cayman Islands court followed a strict literal interpretation of a fund’s constitutional documents – even where that interpretation ran contrary to market practice. Although the case is under appeal, the strict approach to the construction of constitutional documents by the Cayman courts is well established. This approach creates legal risk wherever there is a mismatch between a fund’s constitutional documents and its operations. In a guest article, Appleby attorneys David Lee, Paul Kennedy and Christian Victory review the relevant cases and highlight six steps that market participants can take to manage that legal risk.

To read this article: