Guide
Navigating a return of funds to shareholders of a Cayman Islands exempted company
20 July 2023
The process of returning funds to shareholders of a Cayman Islands exempted company can be relatively straightforward, so long as it is implemented in accordance with the laws of the Cayman Islands. The consequences of getting it wrong are not straightforward, with the possibility of personal liability for directors effecting an unlawful return of capital.
Every scenario is unique, which requires consideration and application of the particular facts in play. Beyond the case specific fact pattern, the general framework enabling a return of funds to shareholders is set out here.
About Mourant
Mourant is a law firm-led, professional services business with over 60 years' experience in the financial services sector. We advise on the laws of the British Virgin Islands, the Cayman Islands, Guernsey, Jersey and Luxembourg and provide specialist entity management, governance, regulatory and consulting services.