Some govt agency laws remain inconsistent with Public Authorities Act Loop Cayman Islands

Black Immigrant Daily News

Laws (or Acts, as they are now called) are passed to establish government owned entities and authorities. Upon review of these Acts, one will discover that they set out the responsibilities of these entities, including power and authority of boards of directors and chief executive officers. Unfortunately, some of the provisions of these Acts are inconsistent with the Public Authorities Act, and they must now be aligned with the Public Authorities Act to avoid inadvertent breaches by boards of the Public Authorities Act.

To give a real-life example of this happening, the Act establishing one agency states that the board of directors has the power to appoint a deputy managing director. However, a legal opinion recently issued to the agency states that the power to appoint a deputy managing director does not lie with the board of directors, but, instead with the chief executive officer (CEO) of the agency. This is because, under the Public Authorities Act, the CEO has the power to appoint any staff the CEO needs to assist with the carrying out of the agency’s operational plan. This includes someone to act as the CEO’s deputy.

When there are inconsistencies like this, specifically where a provision of an Act relevant to an agency is inconsistent with the Public Authorities Act, the Public Authorities Act will prevail with respect to the inconsistency.

If any board of directors of a government agency is unaware of this principle, it may be that the relevant board thinks that it is carry out its functions properly, but is actually falling foul of the Public Authorities Act.

To avoid what could otherwise become a murky, convoluted legal quagmire for a board of directors of a government agency, the Acts that established government owned companies or agencies should be reviewed and corrected immediately for inconsistencies with the Public Authorities Act.

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