The Bermuda Stock Exchange is for easing of “60/40” rule

The Chief Executive Officer of the Bermuda Stock Exchange (BSX) Greg Wojciechowski estimates the easing of “60/40” rule as a positive development of the domestic capital market. The sense of “60/40” ownership rule is that 60% of any listed local company should be owned by the Bermudians or Bermudian companies, the other 40% can be owned by individuals and legal entities – non-residents of Bermuda. Nevertheless, according to amendments to the Companies Act, approved by the Senate of Bermuda the previous month, some companies listed on the BSX will obtain the opportunity to apply for license which will raise the additional capital from the foreign sources above the 40% threshold. This rule is restricted to capital-intensive businesses like insurance, telecommunication companies and hotels.

Mr. Wojciechowski also supposes that introducing of amendments into the Companies Act that eliminates derogations on transferability of listed public company’s shares reflects internationally accepted principles directed at strengthening of modern capital market and stock exchange operation.

Expert’s opinion

Judging the late changes, the BSX is not only in words, but in fact is interested in enhancing of investment attractiveness of listed companies. And for these purposes it’s ready to make a concession to non-residents allowing them invest more capital into local companies.    

Evidently, Bermuda maintains its prestige this way as one of the most popular offshore jurisdictions. That’s why if You are interested in company incorporation in Bermuda, but have doubts in listing possibilities – the BSX is becoming year by year more open and profitable place for capital raise. For the company incorporation, please, contact the lawyers of our firm.  

On the basis: http://www.bsx.com/

Julia Akhmetova ( Paralegal of Moscow office Honest & Bright)