Section 14Part 3 — Supplementary provisions
Company to supply information relating to control
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The Board may, at any time by notice in writing, require the directors of a local company or exempted company carrying on business in the Islands to forward to it such information as to the directors of and shareholdings (including the classes of shares and the voting and other rights attached to each class) in the local company or an exempted company carrying on business in the Islands as the Board may specify.
A notice under subsection (1) may require that the directors set out in writing within such period as may be specified in the notice the facts in relation to the directors, shareholdings and other matters relating to the operation, financing and control of the company which the directors contend establish that the local company or exempted company carrying on business in the Islands is complying with section 5 or is a wholly owned subsidiary of such a company.
The Board may —
by written notice, summons a director of a local company or an exempted company carrying on business in the Islands to appear before the Board at the time specified in the notice, being a time during normal working hours; and
on the appearance of the director in accordance with the notice, put to that director questions in respect of the directors, shareholders and other matters relating to the operation, financing and control of the company.
The Board may, at any time by notice in writing, require a Caymanian who claims to be the beneficial owner of shares in a local company or exempted company carrying on business in the Islands to forward to it such information as to that person's ownership of the shares as the Board may specify.
The Board may —
by written notice, summons a Caymanian who claims to be the beneficial owner of shares in a local company or exempted company carrying on business in the Islands to appear before the Board at the time specified in the notice, being a time during normal working hours; and
on the appearance of the shareholder in accordance with the notice, put to that shareholder questions in respect of that person's ownership of the shares.
If —
the directors or a shareholder of a local company or exempted company carrying on business in the Islands fail to comply with all or any of the requirements specified in a notice issued under subsection (1) or (4); or
a director or a shareholder in a local company or exempted company carrying on business in the Islands —
fails to appear before the Board when summoned to do so in accordance with subsection (3)(a) or (5)(a); or
fails to answer any question put to that person in accordance with subsection (3)(b) or (5)(b) fully and truthfully,
and by reason of such failure the Board is unable to establish that the local company or exempted company carrying on business in the Islands is continuing to comply with section 5 or is a wholly owned subsidiary of a company that is continuing to comply with that section, the Board shall, by notice in the Gazette, declare that, for the purposes of section 5(1)(a), the company is not to be taken to be a company complying with section 5 or a company that is a wholly owned subsidiary of such a company.
Where a declaration has been published under subsection (6), the company shall not, for the purposes of section 4(1)(a), be taken to be a company that is complying with section 5 or the wholly owned subsidiary of such a company until such time as the Board publishes a further notice in the Gazette stating that it is satisfied that the company is so complying or is such a subsidiary.
Cross References
- Section 5 of Local Companies Control Actexternal
Compliance with section 5
- Section 4 of Local Companies Control Actexternal
Purposes of section 4(1)(a)