In May 2017, MJM obtained an order for possession and sale on behalf of HSBC Bank Bermuda Limited (the “Bank”) in respect of a mortgaged property owned by two guarantors following the default by the borrower. Approximately, one year later, after the Bank had actual possession of the property, the...
The Government of Bermuda recently passed into law the Merchant Shipping (Registration of Ships) Amendment (No. 2) Regulations 2019 (the “Registration Regulations”) and tabled the proposed Merchant Shipping (Fees) Amendment Regulations 2019 (the “Fees Regulations”). The Registration Regulations expand the list of eligible countries qualified to...
At the end of June 2019, the Government of Bermuda issued draft economic substance guidance notes. The aim of the guidance notes is to assist in determining whether entities are in scope of the requirements of the economic substance legislation and regulations, how to satisfy...
Bermuda was removed from the European Union (“EU”) list of non-cooperative tax jurisdictions at the 17th May, 2019 meeting of the Economic and Financial Affairs Council (“ECOFIN”). Bermuda's commitment to implement tax good governance was confirmed in ECOFIN's official statement, which recognised that Bermuda has...
It is a general basic principle of company law that each company within a group of companies (even those owned and controlled by a parent or intermediate holding company) are separate legal entities. They cannot be lumped together for legal purposes, even if the holding...
The Economic Substance Act 2018 (the “Economic Substance Act”) was tabled on 7 December 2018 and, following revisions, again on 17 December 2018.
Background
In November 2017, the Government of Bermuda made a commitment to the Code of Conduct Group (Business Taxation) (the “COCG”) of the Council of the EU to address concerns relating to economic substance. Bermuda agreed to pass legislation to implement any appropriate changes by 31 December 2018 to avoid being put on an EU list of non-cooperative tax jurisdictions.
The fundamental principles of the law of meetings are sometimes over-looked in the modern climate of unanimous written shareholder resolutions, comprehensive retrospective ratifications, and the liberal application of the “Duomatic principle”. The decision in East Asia Company Limited -v- PT Satria Tirtatama Energindo in the Bermuda Court of Appeal provides a salutary reminder that the devil is always in the details.
In the Matter of the X Trusts [2018] SC (Bda) 56 Civ (12 July 2018) The trustees in this case are private trust companies which have for some years been responsible for managing trusts which control underlying assets worth billions of dollars. The beneficiaries fall into...