Vol 17 (2020) - Issue 5

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This Time It’s Personal: Grand Court of the Cayman Islands Recognises Minority Shareholder Rights to Bring a Direct Personal Claim

Synopsis
The Grand Court of the Cayman Islands recently handed down an important decision on the right of minority shareholders to object to an issue of shares which has the effect of diluting their position in a company. The Honourable Mr Justice Segal held that, contrary to the earlier decision of Mr Justice Kawaley in the matter of Gao v China Biologic Products Holdings, Inc. (unreported, FSD 157/2018, 10 December 2018 ('Gao')), a minority shareholder does have standing to bring a personal claim against the company in respect of such a share issue, and is not necessarily limited to bringing a derivative claim.