of the Island's revolutionary e-commerce laws -- has ceased trading only months after its official launch.

EBS Ltd, which used the service name of EOCnet.com to trade, has failed and has sold most of its assets to OECommerce.com.

Ten staff were laid off in September and EOCnet.com settled with its creditors at less than 100 cents in the dollar, less than what creditors were owed.

Chief Financial Officer of OECommerce.com Claude Le Blanc, said: "EBS Ltd has ceased trading. We have bought the service name of EOCnet.com and have more importantly bought the rights to the act passed by Parliament.'' OECommerce.com has bought up the EOCnet.com's principal assets, but not the company itself.

Assets include not only the EOCnet.com Internet site, but also the ground-breaking private act of incorporation by EBS which was passed by Parliament.

The act is generally considered to be revolutionary, encompassing important issues such as contract formation and EU Data Protection as well as allowing clients to have local `virtual offices' in `e-suites' to take advantage of Bermuda's lack of corporate tax as they conduct electronic transactions with customers or businesses anywhere on the planet.

Businesses will be able to operate from Bermuda without having to incorporate on the Island.

While several EBS staff have been taken on by Bermuda-based OECommerce.com Ltd, OECommerce.com has not assumed any of EOCnet.com's business agreements which include deals with Bank of Bermuda, Cable & Wireless and Sterling Commerce.

Many prominent Island businessmen hold shares in the company. The highest number of shares owned locally are held by by Littlerock Trust, care of Bermudian Grenville Lines. Mr. Lines himself also holds 330,000 shares.

Sjur Linberg of architects Barker & Linberg has 28,983 shares, Peter Bubenzer of Appleby Spurling and Kempe has 7,970, Anthony Nagel a former officer with Bermuda Commercial Bank, 20,000 and Doug Selly a former officer of the Bermuda Monetary Authority who currently works at the Bank of Bermuda has 5,797.

Coverage continues in Business, Page 19