Companies Amendment Act 2014
About Jeremy Leese
Jeremy’s practice focuses on corporate finance, mergers and acquisitions, corporate reorganisations and restructurings, banking and international real estate finance, structured finance, as well as regulatory and legislative compliance.
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The Companies Amendment Act 2014 introduced new provisions with regard to the ability of local and exempt companies to acquire land in Bermuda. It should be noted that consent is still required from the Minister of Economic Development in relation to corporate landholding; however, the Minister’s decision will be guided by the provisions of the legislation and the accompanying policy.
Under the previous legislation, exempted companies were only able to acquire land by way of a lease or tenancy agreement. The recent changes allow for them to purchase land in Bermuda outright for both commercial purposes as well as residential, subject to the Minister’s consent and to the other provisos set out in the policy. However, the residential property pool from which businesses can purchase contains only those properties that are already available to what is known as “restricted persons” – that is, people that do not possess Bermudian status. Companies are restricted from renting the properties in the market or to third parties. The intention behind this rule is for the properties to be purchased and used for accommodation or recreational facilities for employees or corporate hospitality. Local and exempted companies can now hold commercial property if it is to be used specifically for business purposes. They are required to set out what the property will be used for in their application for consent from the Minister.
These changes are milestones for the economic development of Bermuda as a competitive offshore jurisdiction. The changes create a more enticing environment for exempted companies looking for longevity in their association with Bermuda.