Exempted Limited Duration Company
This form of exempted company, while preserving the limited liability to its members if desired, offers the possibility in certain jurisdictions of advantageous treatment as a partnership. An LDC continues until the terminal time or event specified in its Memorandum of Association. However, its duration must not exceed 30 years and it must have at least two members. Upon its duration expiring, it is deemed to have automatically commenced voluntary winding up and dissolution. It may, however, be wound up earlier voluntarily if the members pass a special resolution to that effect. Compulsory liquidation remains available to creditors of the LDC and also for its members in the circumstances applicable to other companies incorporated under the Companies Law.
The Articles of Association of an LDC may provide that the transfer of any share of a member requires the unanimous resolution of all other members.
The Articles of Association of an LDC may provide that the management of the company is vested in the members who are then to be considered as the directors of the company. However, those members can delegate management to a board of directors.
The name of the company must end with “Limited Duration Company” or “LDC”. The registration fee is CI$200, plus the normal exempted company registration fee. The annual fee is the same as that for exempted companies.
The most convenient way to incorporate this type of company in the Cayman Islands is to engage one of the professional firms licensed for this purpose. These firms can provide such services as: registered office; nominee shareholders; directors and other officers; and management of the company on the instruction of the beneficial owner(s)