Section 6Part 1 — Preliminary
Penalty for improper exercise of voting rights, etc.
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If a person, after being served with a notice under section 5(3) —
exercises any voting rights; or
fails to divest themselves of that person's shares in accordance with the notice within the period referred to in section 5(4),
that person shall be liable to forfeit those shares to the Government if a court of summary jurisdiction is satisfied that that person —
exercised those voting rights; or
failed to divest themselves of that person's shares in accordance with the notice,
within the period referred to in section 5(4).
The liability to forfeiture under subsection (1) shall not arise in any case where the owner can prove to the satisfaction of the court of summary jurisdiction that, by reason of the company concerned having ceased to carry on business in the Islands at the relevant time, it would be inequitable for forfeiture to ensue.
Any shares forfeited under subsection (1) shall be vested in the Government of the Cayman Islands for the benefit of the Islands and may be disposed of in such manner as the Cabinet may deem fit.
Cross References
- Section 5 of Local Companies Control Actexternal
Section 5(3) and 5(4) notices and periods