insolvency

Who is caught

Corporate insolvency in Bermuda runs on a general framework of company law overlaid by sector-specific statutes. The winding-up provisions of the Companies Act 1981 (Part XIII) set out compulsory and voluntary winding-up procedures, the appointment and powers of liquidators, and creditor and contributory rights, and the Companies (Winding-Up) Rules 1982 provide the detailed Supreme Court procedural code that applies once a company is subject to court winding-up proceedings.

For regulated firms, the Insurance Act 1978 contains its own winding-up and cancellation provisions for insurers, and the enforcement notices indexed here show funds being wound up on Bermuda Monetary Authority (BMA) petitions under the Investment Funds Act 2006 read together with the Companies Act 1981.

• Companies generally: Local, exempted, overseas (permit), mutual and mutual fund companies are subject to the Companies Act 1981 winding-up regime and the 1982 Rules.
• Insurers: Insurers registered under the Insurance Act 1978 (the notices include Class 1, Class 2, Class 3, Class C and Class E insurers) are subject to the Act's winding-up and cancellation procedures.
• Investment funds: Funds authorised or registered under the Investment Funds Act 2006 (institutional, standard and professional class funds are named in the notices) have been wound up on BMA petition under that Act and the Companies Act 1981.
• Insolvency office-holders and parties: Liquidators, provisional liquidators, special managers, creditors, contributories, petitioners, the Official Receiver and the Registrar of Companies are bound by the 1982 Rules once proceedings are on foot.

What brings a regulated entity within scope in practice, as illustrated by the notices, is serious and prolonged regulatory non-compliance leading the BMA to petition the Supreme Court for a winding-up order or the appointment of joint provisional liquidators.

Sources: Companies (Winding-Up) Rules 1982 · Companies Act 1981 · Insurance Act 1978 · Notice - Winding up - British Steamship Protection and Indemnity (Bermuda) Limited (2023-02-27) · Notice - Winding up - General Professional Indemnity Ltd (2022-10-12) · Notice - Anaplans Institutional Insured Credit Receivables Fund Limited (2022-02-25) · Notice - Winding up - Greins Global (2021-04-20) · Notice: Capital Management of Bermuda Ltd (2020-08-28) · Notice: Excelsior Insurance Ltd (2020-08-28) · Winding Up - Rapture Global Investment Fund Ltd. (2025-11-26) · BMA Winds Up Investment Fund For Regulatory Breaches - Cumulus Eastern European Property Fund Limited (2017-08-11)

Key duties

The continuing obligations in these instruments fall into two groups: the conduct of an insolvency once commenced (governed mainly by the Companies (Winding-Up) Rules 1982), and the underlying compliance duties whose breach the BMA has repeatedly cited as grounds for winding up.

Liquidator obligations

• Residency and service: A liquidator or provisional liquidator must be resident in Bermuda (at least one, where jointly appointed) with credentials accepted by the Court, and must maintain an address for service in Bermuda.
• Statement of affairs and accounts: The liquidator must prepare and file a statement of affairs, subsequent information and periodic accounts, subject to audit by the Registrar of Companies.
• Meetings and proofs: The liquidator must summon and conduct meetings of creditors and contributories, and deal with proof of debts and payment of dividends in the prescribed manner.
• Unclaimed funds: Unclaimed or undistributed money must be paid into the companies liquidation account, with information furnished to the Minister on request.
• Release: A liquidator seeking release must give notice to creditors and contributories, who may object within the prescribed period, before applying to the Court.

Petition and appearance procedure

• Advertisement and verification: Every petition must be advertised in the prescribed form and verified by affidavit, with the required notice period before the hearing depending on who presents it.
• Notice of intention to appear: Any creditor or contributory intending to appear to support or oppose a petition must serve signed written notice, stating name and address, so as to reach the petitioner (the BMA in its own petitions) by the deadline stated in the notice.

Underlying compliance duties

The enforcement notices show the recurring statutory duties whose breach precipitated winding up. For insurers under the Insurance Act 1978 these include preparing, auditing and filing statutory financial statements and returns (Sections 15, 15A, 17 and 18), appointing an approved auditor (Section 16), maintaining a principal representative, meeting the minimum solvency margin (Section 31A) and paying annual business fees (Section 14(3)). For funds under the Investment Funds Act 2006 they include preparing audited financial statements (Section 14(1)(a)), appointing an auditor, investment manager, administrator and custodian (Section 14(1)(b) and (c)), filing annual compliance statements (Section 26(1)(b)), carrying out net asset valuations, and conducting business prudently.

Sources: Companies (Winding-Up) Rules 1982 · Insurance Act 1978 · Notice - Enforcement Action - Stonebridge Capital Hedge Fund (2025-05-09) · Notice - Advertisement of Petition - Stonebridge Capital Hedge Fund Limited (2025-01-21) · Notice - Winding up - British Steamship Protection and Indemnity (Bermuda) Limited (2023-02-27) · Notice - Winding up - General Professional Indemnity Ltd (2022-10-12) · Notice - Anaplans Institutional Insured Credit Receivables Fund Limited (2022-02-25) · Notice - Winding up - Greins Global (2021-04-20) · Notice: Capital Management of Bermuda Ltd (2020-08-28) · Notice: Excelsior Insurance Ltd (2020-08-28) · Winding Up - Diversified Fund Platform Ltd. (2025-11-26) · Winding Up - Sagehi Equity Fund Ltd. (2025-05-09)

Exemptions and carve-outs

The instruments indexed here do not set out broad exemptions from the insolvency regime itself. A few narrowing or alternative mechanisms appear in the source material.

• Scope-limited liquidation: Joint provisional liquidators can be appointed over only part of a company. In the White Rock Insurance (SAC) Ltd matter, JPLs were appointed in respect of the impacted Vesttoo segregated cells only, while the rest of the company continued normal operations.
• Protective, non-terminal appointments: A provisional liquidator appointment need not lead to a wind-up. In the Tahoe Life Insurance Company Limited matter the JPL appointment was made to protect policyholders and preserve assets, with the board remaining in place, rather than to wind the company up at that stage.
• NAV suspension waiver: Under the Investment Funds Act framework a fund may notify the Authority or seek a waiver for suspension of net asset valuation calculation (Section 40 and Rule 7(4) of the Investment Fund Rules 2019); failure to do so was cited as a breach rather than as an available exemption.

Beyond these, the summaries do not describe entity-level carve-outs from the winding-up provisions of the Companies Act 1981 or the Companies (Winding-Up) Rules 1982.

Sources: Notice - Diversified Fund Platform Ltd. (2025-11-26) · Notice - Tahoe Life Insurance Company Limited (2024-07-26) · Notice - The Bermuda Monetary Authority and White Rock Bermuda Jointly Agree to Take Action to Address Alleged Fraud at Vesttoo (2023-08-18) · Winding Up - Diversified Fund Platform Ltd. (2025-11-26) · JPL Appointment - Tahoe Life Insurance Company Limited (2024-07-26) · JPL Appointment - White Rock Insurance (SAC) Ltd (2023-08-18)

Enforcement and penalties

The dominant enforcement outcome across these documents is court-ordered insolvency obtained on BMA petition. The Authority petitions the Supreme Court of Bermuda, which may appoint provisional liquidators (often joint provisional liquidators, or the Official Receiver) and subsequently make a winding-up order.

• Winding-up petitions: The BMA has repeatedly petitioned the Supreme Court to wind up non-compliant insurers under Section 35 of the Insurance Act 1978 and the Companies Act 1981, and funds under Section 36 of the Investment Funds Act 2006 and the Companies Act 1981.
• Provisional liquidation: The Court may appoint provisional liquidators to take control of a company ahead of, or instead of, a final winding-up order, including to protect policyholders and preserve assets.
• Revocation of registration: The BMA revoked the registration of Vesttoo Alpha P&C Fund, LP under the Investment Funds Act 2006 (Sections 10A and 10B(2)), which took effect after a ten-day statutory appeal period expired without appeal.
• Urgent Directions: In the General Professional Indemnity Ltd matter the Authority imposed Urgent Directions under Sections 32 and 32C of the Insurance Act 1978 before later petitioning to wind the insurer up.
• Insurance Act disciplinary tools: The Insurance Act 1978 gives the Authority powers of investigation, entry and information-gathering, and disciplinary tools including civil penalties, public censure, prohibition orders and injunctions.

The summaries do not state specific monetary penalty amounts or fixed fine scales for the insolvency and winding-up provisions.

Sources: Insurance Act 1978 · Notice - Rapture Global Investment Fund Ltd. (2025-11-26) · Notice - Advertisement of Petition - Stonebridge Capital Hedge Fund Limited (2025-01-21) · Notice - Vesttoo Alpha P&C Fund, LP (2023-12-22) · Notice - Winding up - British Steamship Protection and Indemnity (Bermuda) Limited (2023-02-27) · Notice - Winding up - General Professional Indemnity Ltd (2022-10-12) · Notice - Winding up - Greins Global (2021-04-20) · Notice: Capital Management of Bermuda Ltd (2020-08-28) · Notice: Excelsior Insurance Ltd (2020-08-28) · Winding Up - Rapture Global Investment Fund Ltd. (2025-11-26) · Revocation - Vesttoo Alpha P&C Fund, LP (2023-12-22) · Winding Up - General Professional Indemnity Ltd (2022-10-12) · Winding Up - Greins Global Ltd. (2021-04-20) · Winding Up - Excelsior Insurance Ltd (2020-08-28)