Guide

Navigating a return of funds to shareholders of a Cayman Islands exempted company

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.