Problem: A client sought a simple company name change. We quoted a fixed fee of $250. Instead, the client went to a lawyer, who charged $1,000 and produced documents with the wrong name.
What Could Have Gone Wrong?
- Once the company was dissolved, its assets automatically vested to the Cayman government.
- Reinstatement of the company was required, but this carried costs, delays and complications.
- Reporting obligations in other jurisdictions (e.g., where shareholders resided) could also be triggered.
Our Intervention:
- Examined why the company had been structured in a certain way to avoid repeating past mistakes.
- Avoided compounding errors, unlike other firms that reinstated companies without asking questions.
Positive Outcome:
- Examined why the company had been structured in a certain way to avoid repeating past mistakes.
- Avoided compounding errors, unlike other firms that reinstated companies without asking questions.