In most cases, Cayman Islands companies are closed because of liquidation. Voluntary liquidation can be done by the passing of a decree of dissolution by the shareholders or by some event of time that has been set forth in the company’s Articles of Incorporation.
Companies can also be dissolved by being taken from the register of as a defunct company or by not paying their annual fees. A Cayman court can also order a liquidation of a company. If a company moves from the Caymans to another jurisdiction, they are automatically dissolved.
When the dissolution occurs, the liquidators will complete the process by paying creditors, etc. When a company is taken from the list of companies, the property of the company belongs to the Cayman government.