Section 8Part 1 — Preliminary
Allotment and transfer of shares
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No allotment of shares in a local company or an exempted company carrying on business in the Islands shall be made by the directors or officers of the company if such allotment will, to the knowledge or belief of them, or any of them, result in the number of shares beneficially owned by persons who are not Caymanians exceeding forty per cent of the total number of the shares issued by the company unless consent is given by the Board in writing.
The directors and officers of a local company or an exempted company carrying on business in the Islands shall decline to register any transfer of shares in the company if such transfer will, to the knowledge or belief of the directors, or any of them, result in the number of shares beneficially owned by persons who are not Caymanians exceeding forty per cent of the total number of the shares issued by the company unless prior consent is given by the Board in writing.
No allotment of shares in a local company or an exempted company carrying on business in the Islands shall be made to any person unless the application for those shares sets out whether or not the applicant is Caymanian.
No transfer of shares in a local company or an exempted company carrying on business in the Islands shall be registered unless the instrument of transfer of those shares sets out with respect to both the transferor and transferee whether or not they are Caymanians.
Any director or officer of a local company or an exempted company carrying on business in the Islands who is knowingly a party to any allotment of shares contrary to subsection (1) or (3) or who is knowingly a party to authorising or permitting any transfer, or registration of a transfer, of shares contrary to subsection (2) or (4), commits an offence and is liable on summary conviction to a fine of two hundred dollars and on conviction on indictment to a fine of two thousand dollars.