How to Select a Liquidator in the Cayman Islands

Why Liquidator Selection Matters

The liquidator is responsible for winding up the entity in accordance with Cayman law. Their qualifications, independence, and commercial judgment can directly affect the speed, cost, and defensibility of the liquidation.

What to Look For

• Cayman-Specific Experience
  The liquidator should be familiar with local statutory filings, CIMA processes, and Registrar requirements.
• Independence
  No prior involvement with the company’s management, investors, or auditors.
• Regulatory Awareness
  Especially for funds, the liquidator should understand CIMA deregistration, tax closures, and audit finalisation.
• Commercial Sensitivity
  Capable of managing litigation risks, investor expectations, and complex asset structures.
• Transparent Pricing
  Clear fixed-fee arrangements aligned with the complexity of the engagement.

Red Flags to Avoid

• Firms offering overly generic liquidation services
• Hidden hourly fees or undefined scope

Final Thoughts

Choosing the right liquidator can reduce risk, lower costs, and lead to a smoother and more efficient winding-up. Directors should consider experience, independence, and practical approach, not just price, when making this decision.