Extracting Capital From A Bermuda Company

It is widely accepted that one of the main purposes of a business is to create value for its shareholders, who contribute significant capital into entities, hoping that value will be returned to them.

While there are a large number of international companies in Bermuda whose shareholders routinely extract value through the methods discussed below, these methods are also very relevant for shareholders of local Bermuda companies, in which there is often significant value.

With more than 3,000 local companies on island, their shareholders are equally entitled to use these methods to recoup value.

Under the Bermuda Companies Act 1981 there are a few ways in which a shareholder of a Bermuda company may extract capital from the entity.