Bermudan Government removes companies' red tape

By added on 08/11/2012

Government has removed the requirement of companies to file a prospectus with the Bermuda Registrar of Companies, it was announced Monday, in a bid to stimulate business on the island, reports the Bermuda Sun.

The Companies Act 1981 had stated that this was applicable to companies whose shares are listed on an exchange deemed an “appointed stock exchange” by the Minister of Business Development and Tourism, currently Wayne Furbert. The Act stated that alternatively the prospectus had to be otherwise accepted by a “competent regulatory authority”.

In a press release, Mr Furbert said: “This amendment to the Companies Act was proposed by a consortium of Bermuda stakeholders working through the Business Bermuda Legislative Change Committee who provided a wide range of recommended amendments in 2011.

“The proposed amendments are intended to respond to changed economic circumstances with the international business environment with the specific intent of removing inefficiency.”

Anthony Whaley, partner at Bermuda law firm Conyers Dill & Pearman and Chairman of the Business Bermuda Legislative Change Committee said: “This is very welcome news for the international business sector. The Legislative Change Committee was instrumental as a stakeholder in bringing about this amendment and we are very pleased to see that Government has supported this position.

“This removal of an unnecessary step makes the process of doing business in Bermuda even more attractive and that is good for the industry as a whole.”