Culross forges path for Cayman clarification

Tue Jul 5, 2011

Paperwork glitch caused extended legal headache

By Niki Natarajan

Nigel Blanshard
This is a cautionary tale for hedge fund investors large and small: make sure the language of the Articles of Association and supporting offering documents tally. Culross Global Management has learned the hard way that no matter how good the due diligence on a manager is, how they play when the chips are down can show a completely different face.

The story of Culross Global SPC versus Strategic Turnaround Master Partnership Limited (STMP) started as one investor trying to redeem from a fund, and concluded by creating case law for what happens when a fund suspends redemptions before the investor’s name is taken off the register of members.

Due to a delay that always occurs when a redemption notice is served and accepted, and the time that the shareholder becomes a creditor, Culross found itself setting a precedent by being adjudged to be both a...

ISSN: 2151-1845 / CDC10004H

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