In Charitable DAF HoldCo Ltd [2026] CIGC (FSD), Mr Justice Parker sitting in the Financial Services Division of the Cayman Islands Grand Court delivered a detailed judgment regarding proprietary injunctions over private wealth fund reorganisations.
The dispute involved an exempted limited company structure established to hold underlying asset interests and make distributions to charitable beneficiaries. Directors executed structural reorganisations and transferred limited partnership interests without notifying supporting organisations, leading to claims of improper purpose, self-dealing, and undervalue asset transfers.
Key Principles Reaffirmed by Parker J
- Jurisdictional Threshold (Order 29, r. 1/2 GCR): The Grand Court exercised its jurisdiction under Section 11 of the Grand Court Act to issue a proprietary injunction freezing the transferred partnership interests, finding serious triable issues regarding directors' fiduciary duties and improper collateral purpose.
- Balance of Convenience & Fortification: The Court held that where proprietary claims are asserted over unique wealth management assets, damages are an inadequate remedy. The Court granted the injunction subject to standard cross-undertakings in damages.
- Source: Review the official court indexing via Parker J Cayman FSD Judgments - Charitable DAF HoldCo Ltd.
Cayman Islands: FSD Grants Proprietary Injunction Over Private Wealth Asset Transfers (Charitable DAF HoldCo)