Bahamas Executive Entities
In early 2012, the Government of The Bahamas introduced legislation to permit the establishment of Executive Entities in The Bahamas.
The Executive Entities Act is a unique and ground-breaking piece of legislation, designed specifically to resolve complex governance issues in fiduciary and wealth management structures. An Executive Entity is designed to act as a power holder and to encapsulate powers currently existing in wealth management and estate planning structures within a new form of legal entity.
In its legal construction, the Executive Entity has similarities in its standalone nature to a foundation and also to a purpose trust, and yet it is equipped with an array of intriguingly different functions, objectives and capabilities.
An Executive Entity can act as a:
- protector, enforcer or authorised applicant
- investment advisor to a succession planning structure
- ultimate shareholder in a family holding structure
- shareholder of a private trust company
- director (replacing a corporate director) or council member in a fiduciary structure
- settlor or founder of a trust or foundation
- trustee of a trust (subject to licensing requirements)
- family governance structure
Key benefits of an Executive Entity:
- limited liability
- unlimited duration
- ability to sue
- exists in a standalone capacity
- can be tailored to perform specific functions
- bestows the role, responsibility and power over certain functions on a legal entity rather than on individuals, relatives and friends