BUILDERS LAW (2018 Revision)

CAYMAN ISLANDS BUILDERS LAW (2018 Revision) Supplement No. 4 published with Extraordinary Gazette No. 22 of 16th March, 2018. PUBLISHING DETAILS Law 4 of 2007 consolidated with Law 16 of 2015. Revised under the authority of the Law Revision Law (1999 Revision). Originally enacted - Law 4 of 2007-23rd March, 2007 Law 16 of 2015-12th August, 2015. Consolidated and revised this 28th day of February, 2018. Page 2 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Arrangement of Sections CAYMAN ISLANDS BUILDERS LAW (2018 Revision) Arrangement of Sections Section Page PART I - PRELIMINARY 1. Short title ...................................................................................................................................5 2. Interpretation .............................................................................................................................5 3. Construction of other expressions ..............................................................................................8 PART II - THE BUILDERS BOARD 4. Builders Board ...........................................................................................................................9 PART III - REGISTRATION OF BUSINESS ENTITIES 5. Registration of business entities .............................................................................................. 11 6. Criteria for registration of a business entity as a contractor ...................................................... 12 7. Penalty for improper exercise of voting rights, etc. ................................................................... 15 8. Return of shareholdings to be made before commencing business and annually ..................... 15 9. Allotment and transfer of shares .............................................................................................. 16 10. Directors may make inquiries ................................................................................................... 17 11. Reconstruction, etc., of registered company ............................................................................ 18 12. Company to supply information relating to control .................................................................... 18 13. Issuance and expiry of registration as a business entity ........................................................... 19 14. Fees for business entities ........................................................................................................ 20 15. Removal, suspension, etc., of business entities from register .................................................. 21 c Revised as at 28th day of February, 2018 Page 3 Arrangement of Sections Builders Law PART IV - REGISTRATION OF QUALIFIED INDIVIDUALS 16. Registration of qualified individuals .......................................................................................... 23 17. Criteria for registration as a qualified individual ........................................................................ 24 18. Issuance and expiry of a licence as a qualified individual ......................................................... 25 19. Fees for qualified individuals .................................................................................................... 25 20. Removal, suspension, etc., of qualified individuals from register .............................................. 26 PART V - OFFENCES AND PROCEEDINGS 21. Holding out as being registered ............................................................................................... 28 22. Offences relating to registration ............................................................................................... 28 23. Fraudulent entries in the register ............................................................................................. 28 24. Appointment and powers of enforcement officers .................................................................... 29 25. Obstruction, etc., of officers of the Board ................................................................................. 30 26. Non-compliance notices and appeals against them ................................................................. 31 27. Powers of court in relation to non-compliance notices .............................................................. 32 28. Application of offences to business entities .............................................................................. 32 29. Appeals ................................................................................................................................... 33 PART VI - COMPLAINTS 30. Right of public to complain ....................................................................................................... 34 PART VII - MISCELLANEOUS 31. Confidentiality .......................................................................................................................... 34 32. Service of documents .............................................................................................................. 34 33. Onus of proof ........................................................................................................................... 35 34. Proof by certificate ................................................................................................................... 35 35. Precondition for prosecution .................................................................................................... 35 36. Offences by officers, etc., of corporate bodies ......................................................................... 35 37. Effect of infringement on business transactions ....................................................................... 35 38. Powers of company limited to those set out in incorporating documents .................................. 36 39. Directives................................................................................................................................. 36 40. Regulations ............................................................................................................................. 36 41. Transitional .............................................................................................................................. 37 Schedule 39 THE BUILDERS BOARD 39 Page 4 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 1 CAYMAN ISLANDS BUILDERS LAW (2018 Revision) ENACTED by the Legislature of the Cayman Islands. PART I - PRELIMINARY 1. Short title 1. (1) This Law may be cited as the Builders Law (2018 Revision) 2. Interpretation 2. (1) In this Law — “ancillary building” has the meaning assigned thereto in regulation 2 of the Development and Planning Regulations (2018 Revision); “application” means the first application for registration after 1st July, 2017, the date of commencement of the Builders Law, 2007 [Law 4 of 2007], an application for renewal or an application seeking re-categorisation; “Appeal Tribunal” means the Appeal Tribunal established under section 46 of the Development and Planning Law (2017 Revision); “Board” means the Builders Board established by section 4; “building contractor” means a business entity which — (a) constructs commercial, industrial, institutional, residential or other buildings, including their ancillary buildings, none of which projects exceed three storeys or 25,000 square feet; or c Revised as at 28th day of February, 2018 Page 5 Section 2 Builders Law (b) repairs, improves, extends or renovates buildings of any size where such work does not affect the structural integrity of the building, and “building construction” shall be construed accordingly; “business entity” means an individual, partnership, company or joint venture that carries on business or proposes to lawfully carry on business, and includes a charitable organisation or other non-government organisation that undertakes the management or supervision of the construction process including the management or supervision of trades contractors; “business premises” means a place registered as a place of business for purposes of this Law or other place at which business is carried on; “Caymanian” means a person who possesses Caymanian status under the Immigration Law (2015 Revision) or any earlier law providing for the same or similar rights and includes a person who acquired that status under Part III of that Law; “civil engineering contractor” means a business entity which builds roads, bridges, docks, utilities infrastructure and other similar constructions as the Board may under section 6 (4) determine, and “civil engineering construction” shall be construed accordingly; “construction” means the carrying out of any building, engineering or other operations in, on, over or under land, including renovations, but does not include — (a) the carrying out of agricultural or landscaping operations; or (b) the carrying out of work to one’s own dwelling or its ancillary buildings or facilities by an individual or by the beneficial owner of a body corporate which owns the dwelling except in so far as such work forms part of a course of conduct that amounts to a trade or business; or (c) the carrying out of maintenance work. “construction manager” means a business entity which performs the management or supervision of onsite construction and the directing of trades contractors whether or not they are paid by the business entity; “contractor” means a business entity, including a construction manager, referred to in section 6(4); “days” means days other than Saturdays, Sundays and public holidays; “enforcement officer” means a natural person appointed under section 24; “general contractor” means a business entity which performs any type or description of construction, other than civil engineering construction, and “general construction” shall be construed accordingly; “joint venture” means a business entity formed by two or more business entities that is formed for the purpose of carrying out construction work; Page 6 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 2 “licence” means a licence issued under section 13 or 18; “project” means an activity involving a construction which is carried out on a more or less continuous basis or simultaneously and complying with such criteria, if any, as the Board may determine and any project that has been broken down into smaller parts in order to defeat the spirit and purpose of this Law shall be deemed to be a project for the purpose of this definition; “project manager” means a person who is the professional representative of the owner of the project and who directs the design, cost or schedules of the project and selects or is a member of the team selecting the construction entity to build the project; “proper address” means — (a) for an individual, his business premises or last known place of business; (b) for a body corporate, the registered office or, in the case of a statutory corporation, its business premises; and (c) for an unincorporated body, its business premises; “qualified individual” means an individual registered as such under section 16; “record” means any means by which information may be stored and retrieved; “register” means the register established under section 4 (8); “registered” means — (a) in relation to a business entity, registered in one of the categories specified in section 6 (4) or other category determined thereunder; and (b) in relation to a qualified individual, registered as such under section 16 (1), to undertake work in relation to which the registration relates and includes temporary registration under section 5 (2) and re-registration by way of re- categorisation under section 5 (3) or otherwise; “residential contractor” means a business entity which constructs, repairs, renovates, extends or improves any building comprising up to four dwelling units, not exceeding three storeys in height, and their ancillary buildings, and “residential construction” shall be construed accordingly; “storey” has the meaning assigned thereto in regulation 2 of the Development Planning Regulations (2018 Revision); “sub-trade” means specific elements of a trade performed by a trades contractor; and “trades contractor” means a business entity which does not fall under the purview of general contractor, residential contractor, building contractor, or civil engineering contractor but which includes other works such as site works contractor, concrete and masonry contractor, metal works contractor, wood, c Revised as at 28th day of February, 2018 Page 7 Section 3 Builders Law plastic and aluminium works contractor, thermal and moisture works contractor, finishes and specialty contractor, special construction contractor, mechanical contractor, plumbing contractor, electrical contractor, detection or monitoring and security contractor, green technologies installation contractor and such other work as may be determined by the Board under section 6(4), and “trades construction” shall be construed accordingly. (2) The expression “carry on business in the Islands”, in relation to a company, includes carrying on business of a kind that requires registration under this Law by that company, either alone or as a joint venture, except — (a) carrying on, from a principal place of business in the Islands, business exterior to the Islands; (b) doing business in the Islands with any person, firm or corporation in furtherance only of the business of that company carried on exterior to the Islands; (c) effecting or concluding contracts in the Islands and exercising in the Islands all other powers, so far as may be necessary for the carrying on of the business of that company exterior to the Islands. (3) For the purposes of this Law, a company shall be deemed to be a wholly owned subsidiary of another company if the latter company enjoys the beneficial interest in all the shares of the former company through beneficial ownership or as beneficiary under a trust, express or implied, or through a nominee shareholder, to the exclusion of any other person, and control in the former company cannot, by means of any arrangement, artifice or device, be exercised either directly or indirectly by persons who are not Caymanians. (4) In the application of any provision in this Law in relation to a project or a construction, whether or not those expressions are used, regard shall be had to the definition of “project” or “construction” contained in this section. 3. Construction of other expressions 3. (1) No share shall be deemed to be beneficially owned by a Caymanian if — (a) that Caymanian is in any way under any obligation to exercise any right attaching to that share at the instance of, or for the benefit of, any person who is not Caymanian; (b) that share is held jointly or severally with any person who is not Caymanian; or (c) that share is owned by a subsidiary company of the company concerned. (2) For the purposes of this Law, a company shall be deemed to be Caymanian controlled if the Board is satisfied that effective control is not, either directly or indirectly, or by reason of any arrangement, artifice or device vested in, or permitted to pass to, persons who are not Caymanians. Page 8 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 4 (3) Notwithstanding subsection (1), a share shall be deemed to be beneficially owned by a Caymanian if — (a) it is owned by a Caymanian as trustee and every person having a beneficial interest in the trust is a Caymanian; (b) it is owned by a Caymanian as nominee for another who is also a Caymanian and no one is in any way under any obligation to exercise any right attaching to that share at the instance of, or for the benefit of, any person who is not a Caymanian: Provided that this subsection shall not apply to any ownership of shares to which paragraph (c) of subsection (1) applies. (4) For the purposes of subsection (1), a company shall be deemed to be a subsidiary of another company (in this subsection referred to as “the parent company”) if — (a) the parent company owns more than fifty per cent of the shares in that company; (b) the parent company is in a position to exercise more than fifty per cent of the voting rights in that company; or (c) by means of any agreement, artifice or device, effective control in that company can be exercised either directly or indirectly by the parent company. PART II - THE BUILDERS BOARD 4. Builders Board 4. (1) There is hereby established a body to be known as the Builders Board, which shall register business entities and qualified individuals and otherwise exercise the powers and perform the duties conferred or imposed on it by or under this Law. (2) The Board may delegate any of its functions conferred under this Law or regulations made hereunder. (3) The Board shall consist of — (a) ten voting members appointed by the Cabinet comprising — (i) one person who is registered as a building contractor, but in the case of the first Board the Cabinet shall appoint a person who, in its opinion, would qualify for registration as such; (ii) one person who is registered as a residential contractor, but in the case of the first Board the Cabinet shall appoint a person who, in its opinion, would qualify for registration as such; c Revised as at 28th day of February, 2018 Page 9 Section 4 Builders Law (iii) one person who is registered as a general contractor, but in the case of the first Board the Cabinet shall appoint a person who, in its opinion, would qualify for registration as such; (iv) one person who is registered as a civil engineering contractor, but in the case of the first Board the Cabinet shall appoint a person who, in its opinion, would qualify for registration as such; (v) one person who is registered as a trades contractor, but in the case of the first Board the Cabinet shall appoint a person who, in its opinion, would qualify for registration as such; (vi) two persons who are registered by recognised bodies as professionals in architecture, engineering, quantity surveying or any other profession relevant to the work of the Board; (vii) two other persons; and (viii) one person qualified to practise law, and no two persons appointed under subparagraph (vi) or (vii) shall be from the same profession; and (b) the two members referred to in subsection (4). (4) In addition to the members specified in subsection (3), the Board shall also comprise the following, who shall have no vote and shall not be counted for purposes of a quorum, that is — (a) the Director of Planning; and (b) the Director of Labour. (5) A member referred to in subsection (4) may depute a person from his board or department, as the case may be, to attend in his stead and such person shall, subject to the general or specific directives of the substantive member, exercise all the rights and be subject to all the obligations of the substantive member at that meeting. (6) The Cabinet shall appoint — (a) one member to be Chairperson and another to be Deputy Chairperson; and (b) a full-time Secretary of the Builders Board, who shall be nominated by the Chief Officer of the relevant ministry under the general powers conferred by the Public Service Management Law (2018 Revision), and who shall keep all minutes of the meetings, proceedings and decisions of the Board. (7) The provisions of the Schedule shall apply to the Board; and the Cabinet may by Order delete from, add to or vary the Schedule. (8) The Board shall establish and maintain a Register of Business Entities and Qualified Individuals, which shall be maintained in such a way as to Page 10 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 5 conveniently reflect the registration of business entities and qualified individuals. (9) Subject to appropriation by the Legislative Assembly of the requisite funds, the cost of the administration and giving effect to this Law shall be a charge on the Treasury. PART III - REGISTRATION OF BUSINESS ENTITIES 5. Registration of business entities 5. (1) The register shall indicate which business entities are — (a) individuals (sole or as a group) operating as business entities; (b) bodies corporate; and (c) such other categories or sub-categories of the categories in paragraphs (a) and (b) as the Board may determine. (2) The Board may register business entities temporarily under such terms and conditions as it may determine. (3) The Board shall enter in the register the name and prescribed particulars of every business entity which, being qualified for registration under section 6, has applied in the prescribed manner for registration or registration by way of re-categorisation, has paid the prescribed fee and has satisfied the Board as to its suitability for registration. (4) Where a business entity is applying for registration having been registered before (whether or not it is applying for registration in the same category as that in which it was previously registered) it shall not be registered unless, in addition to paying the registration fee and meeting all the other requirements of this Law relating to registration, it pays all the fees that it would have paid had it been registered during the period when its registration had lapsed. (5) The register shall be available for public inspection at reasonable times upon payment of such fees as the Cabinet may by regulation prescribe. (6) Upon the creation of the first register after the entry into force of this Law, the Board shall inform the Immigration Board of the business entities that are registered and shall, from time to time, inform the Board of any changes to such registrations. c Revised as at 28th day of February, 2018 Page 11 Section 6 Builders Law 6. Criteria for registration of a business entity as a contractor 6. (1) Subject to the other provisions of this section, a business entity shall, on application made to the Board in the prescribed manner and on payment of the prescribed fee, be entitled, subject to regulations made under section 40 (2) (g), to be registered if the entity satisfies the other requirements for registration under this Part, but the Board may refuse to register an entity if — (a) the Superintendent of Health Insurance appointed under the Health Insurance Commission Law (2016 Revision) informs the Board in writing (on his own initiative or upon inquiry by the Board), which power and duty are hereby conferred, that the business entity concerned is not up-to- date with health insurance contributions; (b) the Director of Labour appointed under the Labour Law (2011 Revision) informs the Board in writing (on his own initiative or upon inquiry by the Board) which power and duty are hereby conferred, that the business entity concerned has an outstanding breach of the said Law, the Workmen’s Compensation Law (1996 Revision) or any other Law (other than the Laws specified in paragraphs (a) and (c)), the enforcement of which falls under the Director of Labour; (c) the Superintendent of Pensions referred to in section 79 of the National Pensions Law (2012 Revision) informs the Board in writing (on his own initiative or upon inquiry by the Board), which power and duty are hereby conferred, that the business entity concerned is not up-to-date with pension contributions; or (d) the business entity concerned does not have public-liability insurance at all or to such extent as may be prescribed in regulations made under this Law. (2) In addition to the other requirements of this Part, the Board shall not register a business entity unless it is satisfied that such business entity has under its control a sufficient number of persons who are qualified to carry out the work in the category for which the entity is applying and the entity is otherwise suitable for registration in that category. (3) Subject to any general directions which the Cabinet may from time to time give in respect of the consideration of applications, the Board may grant an application either conditionally or subject to such terms and conditions as it thinks fit, or may refuse the application, and shall, in deciding whether or not to grant a licence, have regard, among other things, to the following matters — (a) the economic situation of the Islands and the due protection of persons already engaged in business in the Islands; Page 12 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 6 (b) the nature and previous conduct of the company and the persons having an interest in that company whether as directors, shareholders or otherwise; (c) the advantage or disadvantage which may result from that company carrying on business in the Islands; (d) the desirability of retaining in the control of Caymanians the economic resources of the Islands; (e) the efforts made by the company to obtain Caymanian participation; (f) the number of additional people from outside the Islands who would be required to reside in the Islands were the application to be granted; (g) whether the company, its directors and employees have and are likely to continue to have the necessary professional, technical and other knowledge to carry on the business proposed by the company; (h) the finances of the company and the economic feasibility of its plans; (i) whether the true ownership and control of the company have been satisfactorily established; and (j) the environmental and social consequences that could result from the carrying on of the business proposed to be carried on by the company, but the considerations in this subsection shall not apply to a company that is wholly-owned by Caymanians. (4) A business entity may be registered in the category of — (a) general contractor; (b) building contractor; (c) residential contractor; (d) trades contractor; or (e) civil engineering contractor, and the Board may determine from time to time, the categories of work that shall comprise any of the categories in paragraphs (a) to (e) or the respective sub-trades and may, in addition but without recategorising a business entity, permit a business entity to undertake work of a kind that belongs to another category of registration and such permission may relate to a particular project or class of projects, or both. (5) A contractor having been registered by the Board in one of the categories specified in paragraph (a) to (d) may additionally be registered in category specified in paragraph (e) if considered by the Board to be so qualified. (6) A body corporate shall be registered under this Law only if — (a) it is empowered by its Memorandum of Association to carry on business in the Islands in relation to which it seeks registration; c Revised as at 28th day of February, 2018 Page 13 Section 6 Builders Law (b) it is Caymanian-controlled; (c) at least sixty per cent of its shares are beneficially owned by Caymanians; and (d) at least sixty per cent of its directors are Caymanians, but a company need not comply with the requirements in paragraphs (a) to (d) if that business entity existed at the time of this Law coming into effect and it operated on the basis of a licence issued under section 11 of the Local Companies(Control) Law (2015 Revision), and the business entity has been operating as a construction entity in the Islands for a period of twenty years or more. (7) If, for reasons beyond its control, more than sixty per cent of the shares in a business entity cease to be beneficially owned by Caymanians, the company shall be taken to be complying with this section until — (a) a director becomes aware of the cessation; or (b) a director should, with reasonable diligence, have become aware of the cessation, whichever is the sooner, and shall then continue to be taken to be complying with this section if — (i) the directors immediately act in accordance with subsection (7); and (ii) the period mentioned in subsection (9) has not expired. (8) For the purpose of subsection 7 (b) (i), the directors must serve written notice on the person who is not a Caymanian and whose beneficial ownership of shares in the company results in the percentage of shares in the company owned by Caymanians falling below sixty percent requiring the person who is not a Caymanian to divest himself or herself of at least so many of those shares as will result in at least sixty percent of the shares in the company being beneficially owned by Caymanians. (9) The period referred to in subsection (7) (b) (ii) is — (a) the period of three years starting on the date of the service of the notice under subsection (8); or (b) such longer period as the Board may allow. (10) For purposes of clarification, it is declared that the holding of a licence under the Local Companies (Control) Law (2015 Revision) does not entitle a business entity to registration under this Law. (11) A project manager who hires or directs any on site labour or any contractor commits an offence and is liable on summary conviction to a fine of five hundred dollars. Page 14 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 7 7. Penalty for improper exercise of voting rights, etc. 7. (1) If a person, after being served with a notice under section 6 (8) — (a) exercises any voting rights; or (b) fails to divest himself or herself of his shares in accordance with the notice within the period referred to in section 6 (9), that person shall be liable to forfeit those shares to the Government if a court of summary jurisdiction is satisfied that he — (i) exercised those voting rights; or (ii) failed to divest himself or herself of his shares in accordance with the notice within the period referred to in section 6 (9). (2) The liability to forfeiture under subsection (1) shall not arise in any case where the owner can prove to the satisfaction of the court of summary jurisdiction that, by reason of the company concerned having ceased to carry on business in the Islands at the relevant time, it would be inequitable for forfeiture to ensue. (3) Any shares forfeited under subsection (1) shall be vested in the Government for the benefit of the Islands and may be disposed of in such manner as the Cabinet may think fit. 8. Return of shareholdings to be made before commencing business and annually 8. (1) Before any business entity first commences business the company shall forward to the Board a return of shareholdings in the company, as at the date of making the return, signed by the directors of the company. (2) Every business entity shall, in the month of January in each year after the year in which the company first commenced business, forward to the Board a return of shareholdings in the company as at the thirty-first day of December of the immediately preceding year signed by two or more directors or one director and the secretary: Provided that the Board may, in any particular case, grant an extension of time for compliance with this subsection if it is satisfied that non-compliance is not wilful or is due to circumstances beyond the control of the directors of the company. (3) A return of shareholdings under this section shall contain the following particulars — (a) the number and par value of each class of shares issued by the company; (b) the voting and other rights attached to each class of shares; (c) a statement of the number and par value of each class of shares beneficially owned by Caymanians; c Revised as at 28th day of February, 2018 Page 15 Section 9 Builders Law (d) a statement of the number and par value of each class of shares held by other persons; and (e) a statement that the effective control of the company is not, either directly or indirectly or by reason of any artifice or device vested in or permitted to pass to persons other than as specifically shown in the return of shareholdings. (4) Whenever an allotment or a transfer of shares in a business entity is made or registered, as the case may be, the company shall within twenty-one days thereof forward to the Board a return in the prescribed form signed by two or more directors or one director and the secretary giving particulars of such allotment or transfer. (5) Any business entity which fails to comply with this section is guilty of an offence and liable on summary conviction to a fine of one hundred dollars for each day the offence continues. (6) Any person who knowingly and wilfully signs a return made for the purposes of this section which is false in a material particular is guilty of an offence and liable on summary conviction to a fine of two thousand dollars and on conviction on indictment to a fine of five thousand dollars and on any such conviction on indictment the court may, in addition to, or in lieu of, any other penalty which may be imposed, order the forfeiture to the Crown of any shares in connection with which the offence was committed and any shares so forfeited shall be dealt with in such manner as the Cabinet may direct. 9. Allotment and transfer of shares 9. (1) No allotment of shares in a company shall be made by the directors or officers of the company if such allotment will, to the knowledge or belief of them, or any of them, result in the number of shares beneficially owned by persons who are not Caymanians exceeding forty per cent of the total number of the shares issued by the company unless consent is given by the Board in writing. (2) The directors and officers of a company shall decline to register any transfer of shares in the company if such transfer will, to the knowledge or belief of the directors, or any of them, result in the number of shares beneficially owned by persons who are not Caymanians exceeding forty per cent of the total number of the shares issued by the company unless prior consent is given by the Board in writing. (3) No allotment of shares in a company shall be made to any person unless the application for those shares sets out whether or not the applicant is Caymanian. (4) No transfer of shares in a company shall be registered unless the instrument of transfer of those shares sets out with respect to both the transferor and transferee whether or not they are Caymanians. Page 16 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 10 (5) Any director or officer of a company who is knowingly a party to any allotment of shares contrary to subsection (1) or (3) or who is knowingly a party to authorising or permitting any transfer, or registration of a transfer, of shares contrary to subsection (2) or (4), is guilty of an offence and liable on summary conviction to a fine of two hundred dollars and on conviction on indictment to a fine of two thousand dollars. 10. Directors may make inquiries 10. (1) In any case where it is stated in an application for allotment, or in an instrument of transfer, of shares in a company that an applicant, transferor or transferee is a Caymanian, the directors of the company may require that person to furnish such proof of the correctness of such statement as the directors consider necessary; and, in the absence of such proof, the directors may decline to allot any shares or register the transfer. (2) The directors of a company may, at any time, enquire in writing of any person who owns a share in the company — (a) whether or not he is Caymanian; (b) whether or not he is the beneficial owner of the shares; (c) whether or not he is in any way under any obligation to exercise any right attaching to that share at the instance of, or for the benefit of, another person, and, if so, the name of that other person and whether or not that other person is Caymanian; and (d) whether he owns that share jointly or severally with another person and, if so, the name of the other person who has such an interest and whether or not that other person is Caymanian, and, if it is stated in any reply made to an enquiry under this subsection that any person is Caymanian, the directors may further require the person making that statement to furnish such proof of the correctness of that statement as the directors consider necessary. (3) Any person of whom an enquiry is made, or to whom a requirement is addressed, under this section shall reply in writing, within fourteen days after the receipt of the enquiry or the requirement and shall give the information required; and no person shall be liable for breach of any contract, trust or other obligation which is binding on that person in law for supplying such information. (4) Any person who fails to reply in accordance with subsection (2) or (3) or who makes a reply or furnishes information or purported proof which is false in a material particular is guilty of an offence and liable on summary conviction to a fine of two thousand dollars and, in addition, to a mandatory fine of two hundred and fifty dollars for every day on which the offence continues after conviction for that offence. c Revised as at 28th day of February, 2018 Page 17 Section 11 Builders Law 11. Reconstruction, etc., of registered company 11. (1) Where a reconstruction of any registered company has occurred or where any registered company makes an arrangement or enters into an agreement for — (a) the sale or other disposal of its business by amalgamation or otherwise; or (b) the purchase or other acquisition of the business of any other company carrying on business in the Islands, such company shall, within three months after the occurrence of such reconstruction or the implementation of such arrangement or agreement, inform the Board in writing thereof. (2) Where any particulars or information are received under this section, the Board, having regard to the nature of such particulars or information and notwithstanding the fact that the company concerned is a licensed company, may direct that company in writing to apply for another licence within such time and in such form as the Board may determine. (3) The issue of a directive under subsection (2) shall not affect the validity of any licence subsisting at the date of such directive and which was granted to the company to which such directive is issued. (4) Every licence to which subsection (3) refers shall have effect until — (a) it is revoked by the Board under this Law; or (b) another licence is granted to the company concerned upon an application made pursuant to a directive under subsection (2), and thereafter the licence referred to in subsection (3) shall cease to have effect. 12. Company to supply information relating to control 12. (1) The Board may, at any time by notice in writing, require the directors of a company to forward to it such information as to the directors of and shareholdings (including the classes of shares and the voting and other rights attached to each class) in the company as the Board may specify. (2) A notice under subsection (1) may require that the directors set out in writing within such period as may be specified in the notice the facts in relation to the directors, shareholdings and other matters relating to the operation, financing and control of the company which the directors contend establish that the company is complying with section 6 or is a wholly owned subsidiary of such a company. (3) The Board may — Page 18 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 13 (a) by written notice, summons a director of a company to appear before the Board at the time specified in the notice, being a time during normal working hours; and (b) on the appearance of the director in accordance with the notice, put to that director questions in respect of the directors, shareholders and other matters relating to the operation, financing and control of the company. (4) The Board may, at any time by notice in writing, require a Caymanian who claims to be the beneficial owner of shares in a company to forward to it such information as to his ownership of the shares as the Board may specify. (5) The Board may — (a) by written notice, summons a Caymanian who claims to be the beneficial owner of shares in a company to appear before the Board at the time specified in the notice, being a time during normal working hours; and (b) on the appearance of the shareholder in accordance with the notice, put to that shareholder questions in respect of his ownership of the shares. (6) If — (a) the directors or a shareholder of a company fails to comply with all or any of the requirements specified in a notice issued under subsection (1) or (4); or (b) a director or a shareholder in a company — (i) fails to appear before the Board when summoned to do so in accordance with subsection (3) (a) or (5) (a); or (ii) fails to answer any question put to that director or shareholder in accordance with subsection (3)(b) or (5)(b) fully and truthfully, and by reason of such failure the Board is unable to establish that the company is continuing to comply with section 6 or is a wholly owned subsidiary of a company that is continuing to comply with that section, the Board shall, by notice in the Gazette, declare that, for the purposes of section 6 (1) (a), the company is not to be taken to be a company complying with section 6 or a company that is a wholly owned subsidiary of such a company. (7) Where a declaration has been published under subsection (6), the company shall not, for the purposes of section 6 (5), be taken to be a company that is complying with section 6 or the wholly owned subsidiary of such a company until such time as the Board publishes a further notice in the Gazette stating that it is satisfied that the company is so complying or is such a subsidiary. 13. Issuance and expiry of registration as a business entity 13. (1) When the Board has registered a business entity under section 5, it shall issue to the entity a licence in the prescribed form. c Revised as at 28th day of February, 2018 Page 19 Section 14 Builders Law (2) Every licence shall — (a) indicate the category under which the business entity is registered; (b) bear the date on which it is issued; (c) take effect from the date of issue; (d) bear the date on which it expires; and (e) contain such other details as may be prescribed. (3) The Board shall enter in the register the date on which each licence is issued. (4) The Board shall publish notice of the granting or revocation of a licence in the Gazette. (5) Every licence shall expire twelve months after its date of issue, unless at the time of issue the Board specifies a shorter time. 14. Fees for business entities 14. (1) An application for the renewal of registration shall be made at least twenty- eight days before the date of expiry of the registration and an application for registration or for the renewal of registration shall be accompanied by the prescribed application fee and licence fee. (2) An application for the renewal of registration shall be accompanied by the fee apportioned to the number of unexpired months in the calendar year, part of a month being calculated as one month. (3) Where, in the opinion of the Board, the business entity qualifies to be registered but in a category different from the one for which it has applied, the Board shall so inform the applicant who shall be given an opportunity to make further submissions to the Board, either in person or in writing as the Board may direct, as to why he should be registered in the category for which he has applied; the Board shall, within fifteen days, give its decision, which shall be final. (4) Repealed by section 9(b) of the Builders (Amendment) Law, 2015 [Law 16 of 2015]. (5) Where more than one year elapses and the business entity has not paid its fees and penalties under this Law, it shall not be eligible for registration until it pays the arrears of penalties, as well as its fees for the licence that it is applying for; and where in the opinion of the Board a new business entity that applies for registration comprises participants who are substantially the same as an entity that fell into arrears without filing with the Board a notice to the effect that it is no longer in business, it may require that all or such portion of the arrears (owed by the company) as the Board may determine be paid before the application is granted . Page 20 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 15 15. Removal, suspension, etc., of business entities from register 15. (1) The Board may remove the name of a business entity from the register, suspend the licence of the entity (with or without conditions), re-categorise or reprimand it for any of the following — (a) the business entity has performed work in a manner which does not display the level of competence expected from a registered business entity; (b) the business entity fails to comply with any condition of registration; (c) the business entity ceases to be engaged in the business of performing construction; (d) the Superintendent of Health Insurance appointed under the Health Insurance Commission Law (2016 Revision) informs the Board in writing (on his own initiative or upon inquiry by the Board), which power and duty are hereby conferred, that the business entity concerned is not up-to- date with health insurance contributions; (e) the Director of Labour appointed under the Labour Law (2011 Revision) informs the Board in writing (on his own initiative or upon inquiry by the Board) which power and duty are hereby conferred, that the business entity concerned has an outstanding breach of the said Law, the Workmen’s Compensation Law (1996 Revision) or any other Law (other than the Law specified in paragraph (d), the enforcement of which falls under the Director of Labour; (f) the Superintendent of Pensions referred to in section 79 of the National Pensions Law (2012 Revision) informs the Board in writing (on his own initiative or upon inquiry by the Board), which power and duty are hereby conferred, that the business entity concerned is not up-to-date with pension contributions; or (g) the business entity concerned does not have public-liability insurance at all or to such extent as may be prescribed in regulations made under this Law. (2) The Board shall remove a name of a business entity from the register or revoke a licence where — (a) a court has ordered that the name be removed from the register or that the licence be revoked on the grounds of contravention of this Law or regulations made hereunder; (b) the business entity has persistently carried on work in a manner which does not display the level of competence expected from a registered or licensed business entity; (c) the business entity ceases to hold the qualifications specified by or under section 6; c Revised as at 28th day of February, 2018 Page 21 Section 15 Builders Law (d) if the company concerned fails to comply with any directive or requirement issued by the Board; or (e) if the company concerned fails to pay its renewal fee; (f) if any of the matters referred to in subsection (3) occurs; (g) the business entity has applied to have its name removed from the register or its licence to be revoked. (3) Where a business entity — (a) is adjudicated bankrupt; (b) has been, or one of its directors or partners has been, convicted of a criminal offence (of such a nature as to render the business entity, or the director or partner concerned unsuitable to be involved in the building industry) and is sentenced to a custodial term of imprisonment of one year or more ; or (c) is a person in respect of whom an order has been made under the Mental Health Law, 2013 [Law 10 of 2013]; (d) is in receivership;

or (e) is in liquidation, the Board shall take such decisions, including decisions referred to in subsection (1), (2) and (3) but not limited thereto, to protect, to the extent possible or necessary, the interests of the business entity, directors, partners, employees, investors, creditors and any other persons who have not been involved in any untoward conduct. (4) Before revoking a licence under subsection (5) the Board shall give the company concerned notice in writing of its intention to do so specifying therein the grounds on which it proposes to revoke the licence, and shall afford the company concerned an opportunity of submitting to it a written statement and, at the discretion of the licensee, oral submissions, of objections to the revocation of the licence; and thereafter the Board shall advise the company concerned of its decision in the matter and of the company’s right of appeal to the Grand Court under section 29 against a decision adverse to it. (5) Where the Board makes, in relation to a business entity, a decision under subsection (1), (2) or (3) (other than a removal upon request), notice in writing of that decision and of the reasons for it shall be served on that business entity, which may appeal under section 29. (6) For purposes of clarification it is declared that no appeal shall lie where a name has been removed upon request of the business entity concerned. (7) A decision made under this section to remove the name of a business entity from the register or to revoke its licence shall not take effect before the expiration of the period allowed for appealing against it, and where an appeal Page 22 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 16 is lodged, the decision shall not take effect before the appeal is disposed of or withdrawn or fails for want of prosecution. (8) A business entity whose name is removed from the register or licence revoked under this section shall not be entitled to be restored thereto or the licence restored except where, upon its application, the Board decides that the registration or licence be so restored and the Board shall not so decide unless the reason that led to the removal from the register or revocation of the licence no longer exists. (9) Where the Board receives an application for registration from a business entity in which a person who was culpable in an entity that was disciplined by the Board in the past is involved, the Board shall take into account that fact and may, for that reason, refuse to register or issue a licence. (10) Except where a business entity is removed from the register or its licence revoked upon the request of the entity concerned, a decision or order under this section for the removal of the business entity’s name from the register or revocation of its licence may prohibit an application under subsection (8) by the business entity concerned until the expiration of a period not exceeding twelve months. PART IV - REGISTRATION OF QUALIFIED INDIVIDUALS 16. Registration of qualified individuals 16. (1) The Board shall enter in the register, in the appropriate category of qualified individuals, the name and prescribed particulars of every person who has applied in the prescribed manner for registration as such under this Law, has satisfied the Board as to his suitability for registration and has paid the prescribed fee. (2) The Board shall enter in the register the name and prescribed particulars of every qualified person who, being qualified for registration under section 17, has applied in the prescribed manner for registration or registration by way of re-categorisation, has paid the prescribed fee and has satisfied the Board as to his suitability for registration. (3) Where an individual is applying for registration as a qualified individual having been registered before (whether or not he is applying for registration in the same category as that in which he was previously registered) he shall not be registered unless, in addition to paying the registration fee and meeting all the other requirements of this Law relating to registration, he pays all the fees that he would have paid had he been registered during the period when his registration had lapsed. c Revised as at 28th day of February, 2018 Page 23 Section 17 Builders Law (4) The register shall be available for public inspection at reasonable times upon payment of such fees as the Cabinet may prescribe. (5) Upon the creation of the first register after the entry into force of this Law, the Board shall inform the Immigration Board of the qualified individuals that are registered and shall, from time to time, inform the Board of any changes to such registrations. (5A) Where — (a) at the date of commencement of this section, a business entity has in its employment a non-Caymanian who is qualified to be registered as a qualified individual; (b) the non-Caymanian has been employed with the business entity for a period of not less than three years immediately preceding the date of commencement of this section; and (c) the business entity does not have in its employment a Caymanian who is qualified to be registered as a qualified individual, the non-Caymanian may be registered as a qualified individual; but where the non-Caymanian’s employment with the business entity was for a period of less than three years immediately preceding the date of commencement of this section, the non-Caymanian may be registered as a qualified individual only until the first renewal of the business entity’s licence. (6) For the purpose of clarification, it is declared that the purpose of registering qualified individuals is to ensure that all persons, whether or not they are Caymanian, shall not be allowed to perform certain categories of work unless they are registered as qualified individuals; in particular, but without limiting the generality of this subsection, being registered as a qualified individual does not entitle a person to run a business unless, in addition to being registered as such, he is also registered as a business entity under this Law. 17. Criteria for registration as a qualified individual 17. (1) No person may be registered for the first time as a qualified individual under this Law unless that person — (a) has passed an examination set and administered by the Board; or (b) has passed an examination set by the Board but administered by an institution in the Islands that is recognised for that purpose; or (c) has passed an examination set and administered by an institution outside the Islands which is recognised by the Board; or (d) otherwise satisfies the Board that that person is capable of undertaking the category of work for which that person is applying. (2) The Board may register an individual either conditionally or subject to such terms and conditions as it thinks fit, or may refuse the application. Page 24 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 18 18. Issuance and expiry of a licence as a qualified individual 18. (1) When the Board has registered a qualified individual under section 16, it shall issue to that person a licence as a qualified individual in the prescribed form. (2) Every licence shall — (a) indicate the category under which the qualified individual is licensed; (b) bear the date on which it is issued; (c) take effect from that date; (d) bear the date on which it expires; and (e) contain such other details as may be prescribed. (3) The Board shall enter in the register the date on which each licence is issued. (4) The Board shall publish notice of the granting or revocation of a licence in the Gazette. (5) Every licence shall expire twelve months after its date of issue, unless at the time of issue the Board specifies a shorter time. 19. Fees for qualified individuals 19. (1) An application for the renewal of registration shall be made at least twenty- eight days before the date of expiry of the registration and an application for registration or for the renewal of registration shall be accompanied by the prescribed application fee and licence fee. (2) An application for the renewal of registration shall be accompanied by the fee apportioned to the number of unexpired months in the calendar year, part of a month being calculated as one month. (3) Where, in the opinion of the Board, an individual qualifies to be registered but in a category different from the one for which he has applied, the Board shall so inform the applicant who shall be given an opportunity to make further submissions to the Board, either in person or in writing as the Board may direct, as to why he should be registered in the category for which he has applied; the Board shall, within fifteen days, give its decision, which shall be final. (4) Repealed by section 12(b) of the Builders (Amendment) Law, 2015 [Law 16 of 2015]. (5) Where more than one year elapses and a qualified individual has not paid his fees and penalties under this Law, he shall not be eligible for registration until he pays the arrears of penalties, as well as his application fee and licence fee for the licence that it is applying for; and where a person who was formerly registered applies for registration without having filed with the Board a notice to the effect that he is no longer in practice, it may require that all or such c Revised as at 28th day of February, 2018 Page 25 Section 20 Builders Law portion of the arrears of penalties as the Board may determine be paid before the application is granted. 20. Removal, suspension, etc., of qualified individuals from register 20. (1) The Board may remove the name of an individual from the register, suspend his licence (with or without conditions), re-categorise or reprimand that individual for any of the following — (a) where the qualified individual ceases to hold the qualifications specified by or under section 17; (b) where the qualified individual has performed work in a manner which does not display the level of competence expected from a qualified individual; (c) where the qualified individual fails to comply with any condition of registration; or (d) where the qualified individual ceases to be engaged in the business of performing construction, (2) The Board shall remove the name of a qualified individual from the register or revoke his licence where — (a) a court has ordered that the name be removed from the register or that the licence be revoked on the grounds of contravention of this Law or regulations made hereunder; (b) the qualified individual has persistently carried on work in a manner which does not display the level of competence expected from a qualified individual; (c) if the qualified individual concerned fails to comply with any directive or requirement issued by the Board; or (d) if the qualified individual concerned fails to pay its renewal fee; (e) if any of the matters referred to in subsection (3) occurs; or (f) the qualified individual has applied to have his name removed from the register or his licence revoked. (3) Where the qualified individual — (a) is adjudicated bankrupt; (b) has been convicted of a criminal offence of such a nature as to render that individual unsuitable to continue in the category in which he is registered or at all and is sentenced to a custodial term of imprisonment of one year or more; or (c) is a person in respect of whom an order has been made under the Mental Health Law, 2013 [Law 10 of 2013]. Page 26 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 20 the Board shall take such decisions, including decisions referred to in subsections (1) and (2) but not limited thereto, to protect, to the extent possible or necessary, the interests of contractors, directors, partners, employees, investors, creditors and any other persons who have not been involved in any untoward conduct. (4) Before revoking a licence under subsection (1) or (2) the Board shall give the qualified individual concerned notice in writing of its intention to do so specifying therein the grounds on which it proposes to revoke the licence, and shall afford the qualified individual concerned an opportunity of submitting to it a written statement, or at the discretion of the licensee, oral submissions, of objections to the revocation of the licence; and thereafter the Board shall advise the qualified individual concerned of its decision in the matter and of the qualified individual’s right of appeal to the Grand Court under section 29 against a decision adverse to it. (5) Where the Board makes a decision, in relation to a qualified individual, under subsection (1) or (2), notice in writing of that decision and of the reasons for it shall be served on that person, who may appeal under section 29. (6) For purposes of clarification it is declared that no appeal shall lie where a name has been removed upon request of the qualified individual concerned. (7) A decision made under this section to remove a qualified individual’s name from the register or revoke his licence shall not take effect before the expiration of the period allowed for appealing against it, and where an appeal is lodged the decision shall not take effect before the appeal is disposed of or withdrawn or fails for want of prosecution. (8) A person whose name is removed from the register or his licence revoked under this section shall not be entitled to be restored thereto or the licence restored except where, upon his application, the Board decides that the registration or licence be restored and the Board shall not so decide unless the reason that led to the removal or revocation no longer exists. (9) Except where the name of a qualified individual is removed or licence revoked upon the request of the qualified individual concerned, a decision or order under this section for the removal of a person’s name from the register or revocation of his licence may prohibit an application under subsection (8) by the individual concerned until the expiration of a period not exceeding twelve months. c Revised as at 28th day of February, 2018 Page 27 Section 21 Builders Law PART V - OFFENCES AND PROCEEDINGS 21. Holding out as being registered 21. (1) Except as provided in subsection (2), any person who, not being registered under this Law, uses or adopts any style, title or description which implies that such person is so registered commits an offence and is liable on summary conviction to a fine of two thousand dollars and, in addition, to a mandatory fine of two hundred and fifty dollars for every day on which the offence continues and on a second conviction to a like fine or imprisonment for three months, or both. (2) Subsection (1) does not apply to a person — (a) who, having had his name removed from the register, has not yet been given notice in writing by the Board of its removal; or (b) in respect of whom a decision under section 15 or 24 has been taken by the Board and such decision has not taken effect. 22. Offences relating to registration 22. (1) Except as provided in subsection (2), any person who — (a) not registered under this Law carries out any construction; or (b) being registered in a particular category carries out work which is in breach of a condition of his registration, commits an offence and is liable on summary conviction to a fine of two thousand dollars and, in addition, to a mandatory fine of two hundred and fifty dollars for every day on which the offence continues after the person has been convicted of that offence, and on a second conviction to a like fine, or imprisonment for three months, or both. (2) Subsection (1) does not apply to a person who, having had his name removed from the register or been suspended, has not yet been given notice in writing by the Board of the decision. 23. Fraudulent entries in the register 23. A person who wilfully procures or attempts to procure the entry of his name in the register by making or producing or causing to be made or produced any false or fraudulent representation or declaration either orally or in writing commits an offence and is liable on summary conviction to a fine of two thousand dollars. Page 28 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 24 24. Appointment and powers of enforcement officers 24. (1) The Chief Officer responsible for physical planning shall, under the general powers conferred on that Chief Officer by the Public Service Management Law (2018 Revision), appoint in writing enforcement officers for the purposes of this Law and shall issue to such officers a duly authenticated identification document. (2) Subject to subsection (3), an enforcement officer shall, on producing, if so required, the duly authenticated identification document issued under subsection (1), have a right, at all reasonable hours, to enter any business premises for the purposes of ascertaining whether there is on the premises any evidence of any contravention of the provisions of this Law or of regulations made under it; but this section shall not be construed as allowing entry onto residential premises without a warrant unless such premises are used as business premises. (3) If a magistrate, on sworn information in writing, is satisfied that there are reasonable grounds for entry into any business premises for the purpose mentioned in subsection (1) and either — (a) that an enforcement officer has been refused admission to the business premises or the enforcement officer reasonably believes that entry is unlikely to be granted, and that the enforcement officer has given notice in writing to the owner or occupier of the intention to apply for such a warrant; or (b) that an application or the giving of such a notice in writing, would defeat the object of the entry, the magistrate may by warrant signed by that magistrate authorise the enforcement officer to enter the business premises, if need be, by use of reasonable force but shall not allow entry into unoccupied premises. (4) A warrant granted under this section shall continue in force for a period of one month. (5) An enforcement officer entering any business premises by virtue of this section, or of a warrant issued under it, may take with the enforcement officer such other persons as the enforcement officer considers necessary or expedient, and on leaving any business premises which the enforcement officer has entered by virtue of such a warrant shall, to the extent that it is reasonably practicable, leave them in the same condition as the enforcement officer found them. (6) An enforcement officer entering any business premises by virtue of this section, or of a warrant issued under it, may inspect any records (in whatever form they are held) relating to a business of a contractor and, where any such records are kept by means of the computer — c Revised as at 28th day of February, 2018 Page 29 Section 25 Builders Law (a) may have access to, and inspect and check the operation of, any computer and associated apparatus or material which is or has been in use in connection with the records; and (b) may require any person having charge of, or otherwise concerned with the operation of, the computer, apparatus or material to afford the enforcement officer such assistance as he may reasonably require. (7) Any officer exercising any power conferred by subsection (5) may — (a) seize and detain any records, or take copies of them, which he has reason to believe may be required as evidence in proceedings under any of the provisions of this Law; and (b) where the records are kept by means of a computer, may require the records to be produced in a form in which they may be taken away. (8) A business entity shall keep at the business premises all records relating to its business for at least twelve months, but where the records relate to a project that runs for two years or more, the records shall be kept for at least twenty- four months after the end of the project. 25. Obstruction, etc., of officers of the Board 25. (1) Any person who — (a) intentionally obstructs any person acting in the execution of his duties under this Law; or (b) without reasonable cause fails to give to the Board, or to any person acting in the execution of his duties under this Law, any assistance or information which the Board or that person may reasonably require of that person for the performance of their respective functions under this Law, commits an offence and is liable on summary conviction to a fine of two thousand dollars or to imprisonment for three months, or to both. (2) Any person who, in purported compliance with a requirement mentioned in subsection (1) (b) — (a) furnishes information which he knows to be false or misleading in a material particular; or (b) recklessly furnishes information which is false or misleading in a material particular, commits an offence and is liable on summary conviction to a fine of five thousand dollars or to imprisonment for six months, or to both. (3) Nothing in subsection (1) (b) shall be construed as requiring any person to answer any question or to give information if to do so might incriminate that person. Page 30 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 26 26. Non-compliance notices and appeals against them 26. (1) Where — (a) the Board has reasonable grounds for believing that a person is carrying out construction in breach of section 22; and (b) the Board considers it is expedient to do so having regard to all the circumstances, the Board may issue a non-compliance notice requiring the breach to be remedied. (2) A non-compliance notice shall specify — (a) the matters alleged to constitute a breach of section 22; (b) the construction which the person named in the notice is prohibited from carrying out; (c) any steps which the Board requires to be taken by the person alleged to be in breach in order to remedy the breach, including steps enabling that person to comply with the conditions of his registration or to become registered; and (d) the period within which any such steps are to be taken. (3) A non-compliance notice shall take effect seven days after the date of service of the notice on the person named in it as being in breach of this section. (4) As soon as practicable after the Board has issued a non-compliance notice a copy of the notice shall be served — (a) on the person named in it as being in breach of section 22; and (b) on any person who has an interest in any land or business premises on or in relation to which the breach has occurred. (5) A person who contravenes this section commits an offence and is liable on summary conviction to a fine not exceeding two thousand dollars and, in addition, to a mandatory fine of two hundred and fifty dollars for every day on which the offence continues after the person has been convicted of that offence, and on a second conviction to a like fine or imprisonment for three months or both. (6) The person named in a non-compliance notice may within twenty days of notification of the decision appeal to the summary court against the notice, whether or not a copy of the notice has been or is deemed to have been served on that person. (7) A non-compliance notice shall cease to have effect on the issuance by the Board of a certificate to the effect that it is satisfied that the person named in the notice — (a) is no longer in breach of section 22 (1) (a); or c Revised as at 28th day of February, 2018 Page 31 Section 27 Builders Law (b) has taken sufficient steps to ensure that he will no longer be in breach of section 22 (1) (b). (8) A certificate referred to in subsection (7) may be issued by the Board — (a) on its own initiative; or (b) on the application of the person named in the non-compliance notice, and in either case shall be issued as soon as reasonably practicable after the decision is made but in any case within five days. (9) If the Board determines that a certificate referred to in subsection (7) must not be issued, it shall in five days give notice in writing to the person named in the notice, giving therein reasons for that determination. 27. Powers of court in relation to non-compliance notices 27. (1) Subsection (2) applies where, in any proceedings for an offence under this Law, a non-compliance notice has taken effect against the person charged with the offence. (2) In proceedings referred to in subsection (1), the summary court may, whether or not the person charged with the offence is convicted of that offence, cancel or affirm the notice and, if it affirms the notice, it may do so either in its original form or with such modifications as the court may think fit. (3) If a person is convicted of an offence under this Law, the summary court may, in addition to or in place of any other sentence imposed on that person, make an order requiring the Board to remove his name from the register. (4) For purposes of clarification it is declared that even in cases where the summary court has ordered the removal of a name from the register and revocation of a licence, the Board shall retain the power to restore the registration and licence where the reason for revoking the licence no longer exists or there is sufficient reason to do so under this Law but this power shall be exercised subject to the restriction contained in sections 15 (9) and 20 (8). 28. Application of offences to business entities 28. Whenever a business entity is found guilty of an offence under this Law — (a) the business entity shall be liable on summary conviction to a fine not exceeding ten thousand dollars, and to a further fine not exceeding two thousand five hundred dollars for every day on which the offence continues after it has been convicted of that offence; and (b) a director or manager of the business entity shall also be guilty of an offence and liable on summary conviction to a fine not exceeding two thousand five hundred dollars, and, in addition, to a fine not exceeding two hundred and fifty dollars for every day on which the offence continues after he has been convicted of that offence unless violation Page 32 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 29 took place without the knowledge or consent of the director or manager concerned. 29. Appeals 29. (1) Any person aggrieved by any decision of the Board (other than in relation to a non-compliance notice, in respect of which an appeal may be lodged under section 26 (6)) may, within twenty days from the date on which the notice is issued or decision notified, or such period as the Appeal Tribunal may allow in a particular case, appeal to the Appeal Tribunal, subject to further appeals, but only on points of law, to the Grand Court and Court of Appeal; and the decision of the Court of Appeal shall be final: Provided that, in an appeal under this section, an appeal by either party shall operate to automatically suspend any order made by the Board unless, due to the gravity of a contravention and other circumstances of the case, the Board directs that, regardless of whether or not an appeal is subsequently lodged, the order shall enter into effect immediately or on a particular date, and this part of the order shall not be subject to appeal. (2) The procedure on an appeal to the Appeal Tribunal under subsection (1) shall be by way of notice of appeal and be by way of re-hearing. (3) In any case where an appeal under subsection (1) lies from a decision of the Board, the document notifying the decision of the Board to the person concerned shall state — (a) the right of appeal to the Appeal Tribunal; and (b) the period within which the appeal may be brought. (4) In subsection (1) the relevant date is — (a) in the case of a non-compliance notice, the date on which the notice takes effect under section 26; and (b) in the case of any decision of the Board other than a decision to issue a non-compliance notice, the date on which notice of the decision was given to the person desiring to appeal. (5) On an appeal against a non-compliance notice, the Appeal Tribunal may either cancel or affirm the notice and, if it affirms the notice, it may do so either in its original form or with such modifications as the Tribunal may think fit. c Revised as at 28th day of February, 2018 Page 33 Section 30 Builders Law PART VI - COMPLAINTS 30. Right of public to complain 30. (1) Any person may file with the Board a complaint against a business entity, a qualified individual or both, on the basis that there has been a failure to comply with this Law or any regulation made hereunder. (2) A person filing a complaint shall not be required to show that the failure has been in relation to the person filing the complaint. (3) In dealing with a complaint, the Board may call such witnesses and call such other evidence as it considers necessary. (4) The Board may make such determinations as it considers necessary or expedient as may be set out in regulations to be made for this purpose under this Law but the Board shall not be empowered to order the payment of compensation. (5) The Cabinet may make the regulations referred to in subsection (4) as well as regulations otherwise governing the procedures and substantive powers of the Board in relation to complaints. (6) An action brought under this section shall be without prejudice to the rights of a complainant under any other law. (7) A decision made by the Board following a complaint under this section shall be subject to appeal and section 29 shall apply as if the decision were of the kind subject to appeal under that section. PART VII - MISCELLANEOUS 31. Confidentiality 31. (1) No information relating to any person that is obtained under or for the purposes of this Law by a member of the Board or any public officer shall be disclosed, except for the purposes of any proceedings for an offence against the Law or a report of those proceedings. (2) Any person who discloses any such information in contravention of this section commits and offence and is liable on summary conviction to a fine not exceeding two thousand five hundred dollars. 32. Service of documents 32. Any document required or authorised under this Law to be served shall be served — (a) for an individual, by delivering it to that individual or by leaving it at his proper address or by sending it by registered post to that individual at that address; or Page 34 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 33 (b) if the person is a body corporate, by serving it in the manner specified in paragraph (a) but with service being effected on, or sent to, the secretary of that body, and in each case the person shall require a person who appears to be authorised to receive mail or other responsible person to sign acknowledging receipt and if there is no responsible person willing to sign, the document may be left at the business premises and the person serving shall record why the document was not signed for. 33. Onus of proof 33. In any proceedings under this Law in which the right of any company to carry on business in the Islands is in issue, the onus of proving that the company had, at the relevant time, the right to carry on such business in the Islands shall be on the company. 34. Proof by certificate 34. A certificate purporting to be under the hand of the Chairperson of the Board specifying that any particular company was or was not licensed under this Law during any period specified in the certificate shall be receivable in evidence in any proceedings under this Law without further proof and shall be prima facie evidence of the facts specified therein. 35. Precondition for prosecution 35. No prosecution in respect of any offence committed under this Law shall be instituted except by or with the consent of the Attorney-General or any person authorised by the Attorney General. 36. Offences by officers, etc., of corporate bodies 36. Where an offence under this Law which has been committed by a company is proved to have been committed with the consent or connivance of, or to be attributable to any negligence on the part of, any director, manager, secretary or other officer of the company, such person as well as that company shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. 37. Effect of infringement on business transactions 37. For the avoidance of doubt it is hereby declared that no business transaction shall be void or voidable by reason only that, at the relevant time, any party thereto is in breach of this Law. c Revised as at 28th day of February, 2018 Page 35 Section 38 Builders Law 38. Powers of company limited to those set out in incorporating documents 38. Nothing in this Law or any licence shall confer on any company any power to do anything which it is not authorised to do by virtue of its Memorandum and Articles of Association or any other provision of law. 39. Directives 39. (1) The Cabinet may give policy directives to the Board in writing but such directives shall not derogate from this Law or any regulations made under this Law. (2) In the exercise of the functions conferred on the Board by or under this Law, the Board shall comply with any such directives. 40. Regulations 40. (1) The Cabinet may make regulations generally for giving effect to this Law and for prescribing any matter which under this Law may be prescribed. (2) Without limiting the generality of subsection (1), regulations under this section may prescribe — (a) the fees payable by applicants for registration under this Law and the particulars of applicants to be registered; (b) the forms to be used and the procedure — (i) for making applications for registration and issuing licences under this Law; and (ii) for the issuing of notices under the Law and date on which they shall become effective; (c) conditions of registration, including conditions as to registration applicable to any class or description of construction; (d) qualifications that may be approved or recognised for the purposes of this Law; (e) relevant experience for the purposes of this Law, being experience in such description of work as may be prescribed; (f) categories for qualified individuals and the pre-requisite for each category; (g) make provision for all matters consequential on the making of an order for the revocation of a licence under section 20 (5); (h) make provision for the notification of any change in relation to a shareholder in a business entity becoming or ceasing to be Caymanian and the determination of any question of whether or not a shareholder is Caymanian; Page 36 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Section 41 (i) prescribe the forms, notices, licences, books, registers and other documents to be used and the information and particulars to be given for the purposes of, and in connection with, this Law; and (j) provide for the giving of public notice of an application or other matter or under, or pursuant to, this Law; (k) the procedures for ensuring that a business entity does not begin operating until it has been registered under this Law; and (l) appeals under this Law. (3) The power of the Cabinet to make regulations under this section includes power — (a) to make different provision in relation to different cases or classes of case (including different provision for different classes of person); and (b) to provide for such exceptions, limitations and conditions, and to make such supplementary incidental, consequential or transitional provisions, as the Cabinet considers necessary or expedient. 41. Transitional 41. (1) Except as provided in subsection (2), where a business entity or qualified individual does not meet the formal requirements for registration under this Law, the Board may register such entity or individual if that business entity or individual proves to the Board by written submission, as may be permitted or allowed by the Board, that the entity or individual was, immediately before the entry into force of this Law, engaged, or had the capacity to engage, in the same activity as that in which it or he requires registration and its or his record in that regard is satisfactory. (2) The Board may determine that a business entity or qualified individual who is to be registered under subsection (1) shall, on the basis of its or his own quality of construction, upon application, be registered in a category less onerous than one in which it or he has been engaged. c Revised as at 28th day of February, 2018 Page 37 Builders Law (2018 Revision) Schedule Schedule THE BUILDERS BOARD (Section 4 (7)) 1. The Builders Board shall be a body corporate with perpetual succession and a common seal. 2. (1) A member of the Board shall, subject to the provisions of this Law, hold office for a period not exceeding two years and such member shall be eligible for re- appointment, and the Cabinet shall, in making appointments, ensure that two members retire every two years. (2) The Cabinet may appoint any person to act temporarily in the place of the Chairperson or a member of the Board in the case of the absence or inability to act of the Chairperson or of such member on account of conflict of interest or for any other cause, as the case may be. (3) If the Chairperson or Deputy Chairperson ceases to be a Chairperson or Deputy Chairperson, that person shall automatically cease to be a member of the Board unless the Cabinet directs otherwise. (4) A member may at any time, by notice in writing addressed to the Cabinet, resign his membership. (5) The Cabinet shall terminate the appointment of a voting member who - (a) resigns his office; (b) becomes incapable of performing his duties due to mental or physical illness; (c) has been adjudged to be bankrupt, suspends payment to or compounds with his creditors; (d) is convicted in the Islands or in any other jurisdiction of an offence involving dishonesty, fraud or any indictable offence; (e) is guilty of serious misconduct in relation to his duties; or (f) is otherwise unable or unfit (through ill-health, failure to attend meetings or otherwise) to discharge the functions of member. (6) Where a member ceases to be a member before the normal expiration of his term, the Cabinet may appoint another person to hold that office for the remainder of the term. c Revised as at 28th day of February, 2018 Page 39 Schedule Builders Law 3. (1) Where a member of the Board is in any way directly or indirectly interested in an application for registration made to the Board or in any other matter which is to be determined by the Board, he shall disclose the nature of his interest at a meeting of the Board as soon as reasonably practicable after the relevant circumstances have come to his knowledge. (2) Any disclosure so made by such a member shall be recorded in the minutes of the Board and that member shall not, after disclosure, take part in the deliberations or decision of the Board with respect to the application or matter. (3) For purposes of clarification it is declared that after a disclosure is made, or the Chairperson determines that a member has an interest that should have been disclosed, the member making the disclosure or the member affected by the Chairperson’s determination, as the case may be, shall not be in the place where the deliberations are being held. 4. (1) The Board may co-opt any person whom it considers able to assist it in the performance of its functions. (2) Any person co-opted may attend and participate in meetings of the Board, but shall not be entitled to vote and shall not be counted for the purpose of constituting a quorum. 5. (1) Except as otherwise specified in this Law, the Board may determine their own procedure. (2) The quorum of the Board is six. (3) The Board shall meet at least once in every month. (4) The Chairperson shall call a meeting of the Board if so directed by the Cabinet or if requested to do so in writing by three voting members of the Board; and such a direction or request must include a statement of the agenda proposed for the meeting. (5) The Board shall reach its decisions by a majority of the votes of the members present and voting at the meeting. (6) At meetings of the Board, the Chairperson shall preside and - (a) in the absence of the Chairperson, the Deputy Chairperson shall preside; (b) in the absence of both the Chairperson and the Deputy Chairperson, the members present shall elect one of their number to preside at that meeting. 6. The Board shall provide the Cabinet with such information as the Cabinet may from time to time require with respect to the activities or proposed activities of the Board; but a requirement imposed under this paragraph shall not impose upon the Board the duty of providing the Cabinet with information which the Board does not possess and cannot reasonably be expected to obtain. Page 40 Revised as at 28th day of February, 2018 c Builders Law (2018 Revision) Schedule 7. The validity of any proceedings of the Board shall not be affected by any vacancy in its membership or by any defect in the appointment, or any disqualification of, any of the members of the Board, so long as a quorum is present. 8. Members of the Board shall be paid such sitting allowances as the Cabinet may determine and be reimbursed for expenditure reasonably incurred in the performance of their duties. 9. (1) The application of the seal of the Board shall be authenticated by the signature of the Chairperson or the Deputy Chairperson and the secretary. (2) All documents issued by the Board, other than those required by law to be under seal, and all decisions of the Board, shall be signed by the Chairperson, the Deputy Chairperson or the secretary. (3) Any document purporting to be one issued by the Board, and to be sealed or signed on behalf of the Board in accordance with this paragraph, shall be received in evidence and shall be deemed to be such a document without further proof unless the contrary is shown. 10. In carrying out its functions under this Law the Board may, with the approval of the Cabinet, enter into arrangements with any department of the Government for the use of the personnel, facilities and services of the department to any extent compatible with the department's operations. Publication in consolidated and revised form authorised by the Cabinet this 13th day of March, 2018. Kim Bullings Clerk of the Cabinet c Revised as at 28th day of February, 2018 Page 41