Nature of Variable Capital Companies (VCCs)
Why use a VCC structure?
The restrictions under the Companies Act in relation to the return of capital, public access to identities of shareholders and the ability to declare dividends only if there is profit are removed under the VCC structure. This provides freedom for investors to invest into a fund or redeem their investments.
The VCC structure also complements the Family Office, wherein rather than setting up an individual family office structure, which may be costly and time consuming and families may lack requirements to obtain tax incentives. They can invest via a VCC and hire a fund manager to manage family funds.