The most significant change to Bermuda company law in 50 years: that’s how the international business sector is describing amendments to the Companies Act which took effect two weeks ago.

The Bermuda International Business Association (BIBA) expressed its support for the changes yesterday, which it said were “e-friendly” and would cut the cost of doing business on the Island.

The Companies Amendment Act 2006 aims to assist companies, the Registrar of Companies and service providers in improving efficiency and convenience through the use of technology.

BIBA chief executive officer Cheryl Packwood said improvements being made to the regulatory environment by the Ministry of Finance were helping to strengthen Bermuda’s position in international business. “This ‘e-friendly’ Act carries amendments that now authorise organisations to use electronic communications as a means of conducting business, significantly improving efficiencies and the cost of doing business in Bermuda, which is critical if we are to remain competitive as an international business jurisdiction,” Ms Packwood said.

During its scrutiny of the proposed amendments, BIBA’s Legislative Change Committee, chaired by Anthony Whaley, partner of Conyers Dill and Pearman, and comprised of members of the local international business community, took note of legal developments in Britain, continental Europe, the US and Canada, and crafted what become know as the ‘A List’ of enhancements, which incorporated the best features of company law from around the world.

Mr. Whaley said the changes had been well received by the industry.

“In our view, this is probably the most significant change to Bermuda company law in half a century,” Mr. Whaley said. “The Act significantly improves efficiency and will reduce the cost of doing business in Bermuda; the Bermuda company will look radically different moving forward.

“It is important to note the process of reviewing Bermuda’s company laws is a continuing process and we intend to keep the needs of international business under constant review. We enjoy working with the Minister of Finance and her team, and look forward to our future collaboration to effect further enhancements.”

During the debate of the amendments in the House of Assembly last month, Finance Minister Paula Cox said: “The purpose of the amendments to the Companies Act is to ensure that Bermuda based businesses operate within a legal and regulatory framework that promotes growth and investment.

“These changes will reduce unnecessary regulation and will be removing unnecessary provisions for compliance, thereby yielding direct savings for companies. By working closely with industry representatives, the Ministry of Finance is continually reviewing how best to facilitate the needs of business.

“As well, the dynamic consultative process does ensure that Bermuda maintains its reputation as a well recognised international financial centre of excellence.”