Current News about the Cayman Islands in the Foreign Press

Thursday,  May 12, 2005

Taiwan companies sidestep investment rules using Cayman

TAIPEI, Taiwan – The Taipei Times reports that, under the principle of its "active opening, efficient management" trade policy, the Taiwan Cabinet is considering lowering the China-bound investment cap. Local publicly listed companies' investments in China are not allowed to exceed 40 percent of their net value under the current investment regulations. Consequently, many companies sidestep the regulations by investing in China through a third destination such as the Cayman Islands.

Cayman-controlled company faces shareholder revolt

LONDON, England – According to the Daily Telegraph, Easier shareholders have launched a revolt against the shell company's directors after they failed to file accounts, the auditors resigned and the shares were delisted. Shareholder Neville Buch has filed a demand on Easier that it hold an extraordinary general meeting to remove the directors, including chairman David Gough.

Mr Gough's Cayman Islands-based Fulton Partners controls Easier and another shell company, Boustead. Easier's only significant asset is £5.4m in cash and Boustead's is £2.6m cash, although auditors have so far been unable to find where the money is being kept for either company.

China to track transfer of assets to Cayman companies

HONG KONG – According to the Hong Kong Standard, global venture capital funds slowed investment into Chinese companies in the first quarter after the country's foreign exchange regulator issued rules that may hinder international share sales and capital-raising by China businesses.

The regulations will track cross-border capital flows and control the transfer of Chinese assets from domestic to offshore companies, including those in the Cayman Islands, where many of the Chinese companies listed in Hong Kong and the United States have headquarters.

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