Vol 20 (2023) - Issue 3

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Legal Proceedings by or against an Exempted Limited Partnership in Cayman Islands: The Debate about the Correct Party

Synopsis
This article considers two Cayman court decisions on claims brought by limited partners in respect of an exempted limited partnership ('ELP') and the court's interpretation of provisions in the Exempted Limited Partnership Act (2021 Revision) (the 'ELPA').
Kuwait Ports Authority & Ors v. Port Link GP Ltd & Ors (CICA (Civil) Appeal Nos. 002 & 003 of 2022, 20 January 2023) was the first decision by the Cayman Islands Court of Appeal considering section 33(3) of the ELPA on derivative claims brought by a limited partner on behalf of an ELP.
Re Formation Group (Cayman) Fund I, L.P. (FSD 366 of 2021 (IKJ), 21 April 2022)) was the latest decision in a series of conflicting decisions of The Grand Court of the Cayman Islands (the 'Grand Court') on whether a winding up petition could be presented against an ELP.