Section 7Part 1 — Preliminary
Return of shareholdings to be made before commencing business and annually
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Before any —
local company; or
exempted company that is complying with section 5(1),
first commences business the company shall forward to the Board a return of shareholdings in the company as at the date of making the return signed by the directors of the company.
Every local company and every exempted company under subsection (1) shall, in the month of January in each year after the year in which the company first commenced business and for each year that it continues to carry on business, forward to the Board a return of shareholdings in the company as at the thirty-first day of December of the immediately preceding year signed by two or more directors or one director and the secretary:
Provided that the Board may, in any particular case, grant an extension of time for compliance with this subsection if it is satisfied that non-compliance is not wilful or is due to circumstances beyond the control of the directors of the company.
A return of shareholdings under this section shall contain the following particulars —
the number and par value of each class of shares issued by the company;
the voting and other rights attached to each class of shares;
a statement of the number and par value of each class of shares beneficially owned by Caymanians;
a statement of the number and par value of each class of shares held by other persons; and
a statement that the effective control of the company is not, either directly or indirectly or by reason of any artifice or device vested in or permitted to pass to persons other than as specifically shown in the return of shareholdings.
Whenever an allotment or a transfer of shares in a local company or an exempted company carrying on business in the Islands is made or registered, as the case may be, the company shall within twenty-one days thereof forward to the Board a return in the prescribed form signed by two or more directors or one director and the secretary giving particulars of such allotment or transfer.
Any local company or any exempted company carrying on business in the Islands which fails to comply with this section commits an offence and is liable on summary conviction to a fine of twenty dollars for each day the offence continues.
A person who knowingly and wilfully signs a return made for the purposes of this section which is false in a material particular commits an offence and is liable on summary conviction to a fine of two thousand dollars and on conviction on indictment to a fine of five thousand dollars and on any such conviction on indictment the court may, in addition to, or in lieu of, any other penalty which may be imposed, order the forfeiture to the Crown of any shares in connection with which the offence was committed and any shares so forfeited shall be dealt with in such manner as the Cabinet may direct.
Cross References
- Section 5 of Local Companies Control Actexternal
Section 5(1)