Bermuda: Corporate/Commercial Law

This background note summarises the Government of Bermuda’s announcements foreshadowing a Competition Act 2026, and is the first in a series of short articles in respect of this proposed legislation.

Bermuda's private equity funds face mounting pressure as net asset values concentrate in fewer, larger portfolios while traditional exit routes remain constrained. With merger and acquisition markets uncertain and distribution droughts complicating fundraising, sponsors must navigate continuation vehicles and NAV financing as alternative liquidity solutions, each carrying distinct structural complexities and contractual implications under Bermuda's flexible partnership framework.

Confidence in the maritime sector's long-term fundamentals remains strong despite ongoing geopolitical and economic uncertainty. Key differentiators include resilience through strong balance sheets, speed and certainty of execution in financing decisions, and expanding investment opportunities beyond traditional vessel finance into ports, terminals and broader maritime infrastructure assets.

The Bermuda Monetary Authority has introduced new sustainability disclosure requirements for investment funds and launched a streamlined Approval in Principle process to accelerate fund registrations. These regulatory developments aim to enhance investor protection while maintaining Bermuda's competitive position in the global investment funds market.

The Bermuda Monetary Authority has released a consultation paper on artificial intelligence regulation in financial services, proposing a risk-based framework that extends existing regulatory requirements rather than creating new licensing regimes. Financial institutions now face critical decisions about how to classify AI use cases, implement governance controls, and prepare for heightened scrutiny of generative and agentic AI systems before the October 30 feedback deadline.

Artificial intelligence is rapidly transforming workplace decision-making, moving from administrative tasks to influencing recruitment, performance management, and termination decisions. As employers increasingly rely on AI systems to process information and make recommendations about employees, they face growing legal risks around discrimination, transparency, and accountability. Understanding how existing privacy laws like Bermuda's PIPA apply to AI-assisted employment decisions, and implementing proper h

Bermuda's Limited Liability Company (LLC) structure offers a compelling alternative to traditional companies and limited partnerships, combining governance flexibility with full limited liability protection for members who actively participate in management. This hybrid vehicle has evolved from a slow start to become an increasingly popular choice for investment platforms, joint ventures, and multinational structures seeking consistency across jurisdictions.

The catastrophe bond market has officially broken records in H1 2026, with the highest number of deals settling in the first six months of any year.

On 11 June 2026 Bermuda's Registrar of Companies (the 'RoC') released draft Beneficial Ownership Regulations ('Regulations') and revised draft Beneficial Ownership Regime of Bermuda Guidance Notes (the 'Guidance Notes').

Company directors constitute fiduciaries under Bermuda law and therefore owe various duties to their company. The duties owed by the directors are founded in both legislation and the common law.

On 21 November 2025, Bermuda passed the Companies (Prohibition of Bearer Shares and Nominee Directors) Amendment Act 2025 (Act).

The Companies (Prohibition of Bearer Shares and Nominee Directors) Amendment Act 2025 (the "Act") was passed in the House of Assembly on 21 November 2025.