Problem: A company was voluntarily liquidated after the client signed resolutions confirming no assets remained. Months later, the client came back to us, claiming the dissolved company owned a multi-million-dollar property in Mexico.
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:
- The client was saved from even greater financial and regulatory damage.
- We provided damage limitation and a compliant reinstatement path.
- Our approach highlighted the need for rigorous checks before dissolution of a company.