Cayman liquidator says directors in Cayman Islands must be made aware of their corporate responsibilities
Chris Johnson of Chris Johnson Associates Ltd, “the only boutique and independently owned business recovery and insolvency firm practicing in the Cayman Islands”, says:
“A branch of the Institute of Directors based in England is what is required in the Cayman Islands in order that persons holding directorships whether they be one or several, can be made aware of their corporate responsibilities. In my experience many persons have no idea that directors can be held liable for their misdeeds. Training must be made available to all whether directors are in the construction business, the hotel business, where a recent director was trading insolvent to the detriment of creditors, the real estate business, retail businesses or the financial industry.
“The latter does have a Directors Association but only the elite professionals can join and their numbers are of little consequence. They need take a leaf out of Bermuda’s book and not be a self serving protectionist organization.
“Finally the law must be changed to stop directors hiding behind indemnities to the detriment of company investors and creditors. That loophole was changed in England and its colonies decades ago. Regulating finance directors by Cayman Islands Monetary Authority, which is little above a fund raiser for Government, needs go an extra mile, or more likely several. Time for our finance industry to get its act in order.”
Johnson points to this “interesting article close to my heart”:
Five clear first hurdle on path to becoming chartered directors
By Rebecca Zuill From The Royal Gazette
Breaking the stereotype that members of company boards are ‘stale, pale and male’, the Institute of Directors’ first five holders of the Certificate in Company Direction programme have been announced.
Earning this recognition is the first step towards becoming a chartered director.
Rochelle Simons, who is the chairman of the education committee of the Institute of Directors Bermuda, said that Roger Gillett, who is an insurance and reinsurance company director, received a distinction in the CICD examination.
Other successful candidates were Collin Anderson, the assistant director of insurance supervision at Bermuda Monetary Authority; Craig Davis, general manager at LinkBermuda; Adam Hopkin, managing director at Arthur Morris & Company Ltd; and Sara Schroter Ross, general counsel at Bermuda Commercial Bank Ltd.
These delegates sat the examination in June 2014 following completion of the four courses in the Certificate in Company Direction programme. They were: ‘The Role of the Director and the Board’, which took place over two days, ‘The Directors Role in Strategy & Marketing, and Finance for Non-Financial Directors’, both over three days, and a final two-day course on ‘The Directors Role in Leading the Organisation’.
Course leaders from the IoD in London led all the sessions in Bermuda.
“These courses are absolutely invaluable for anyone who is a director of a company, or thinking of becoming one,” Mr Hopkin said. “The scope of what is expected of a modern day board is mind boggling, and the IoD is simply the best organisation to learn it from.
“Huge credit should be given to the executive of the Bermuda branch for arranging these courses and promoting the education of Bermuda’s directors,”
Ms Schroter Ross added: “With governance and the role of the director continuing to play an increasing part in the way we do business, the IOD’s Certificate in Company Direction is perfectly structured so as to hone the skills which I believe are important to develop, in order to be a successful director today.
“I therefore believe that it is important that businesses in Bermuda continue to support the local IOD branch so that it may in turn continue to support, represent and set standards for the leadership skills of directors in Bermuda and across the globe.”
“Ensuring a high standard of corporate governance in Bermuda as an international financial centre is important,” said Mr Anderson, who recently left a role in the Ministry of Health to join the BMA. “My recent experience in the public sector showed me the significant need for competent leadership at the board level. Within the current climate, there is a great need for governmental and quasi-non-governmental bodies to have strong governance characterised by the adoption of internationally recognised standards, with appointed directors who are fully aware of these standards and their wider role.
“The CICD, through the IOD, provides directors with a solid foundation in the principles of governance. It provides directors with access to practical tools they can use in their roles and responsibilities for finance, strategy and the overall leadership of the enterprise.
“It was a rewarding experience, and I look forward to applying the knowledge gained.”
Ms Simons explained: “This professional development programme was launched in July last year. So far, we have taken more than 60 people through various courses in the programme. There is another group of candidates who are ready to sit the examination in November, and further four or five have completed the four courses and will be ready in March.
“And some people elected to just do the courses that interested them.”
Going forward, the programme will be offered during the academic year, she said.
Mr Davis added: “We’re also thrilled that companies have engaged with us to offer courses for their board. Most companies do in-house training for prospective directors — but this provides a more standardised approach.” He pointed to evolving legal requirements and responsibilities for boards that have developed in recent years.
Mr Hopkin said: “There really is no other formal training in the world.”
“People have said, ‘I should have done this five years ago!’ People are recognising the value of it,” said Ms Simons.
