KeyTech exempt from 60/40 rule
Telecommunications company KeyTech Ltd has become one of the first companies to officially take advantage of the 60/40 rule exemption.In a letter to the Bermuda Stock Exchange, on which the company is listed, it said that effective Friday the company was no longer subject to the 60/40 rule, where the majority percentage of a company had to be Bermudian owned.“Further to our letter to you of August 23, 2012, enclosing a copy of our notification letter to the Minister of Business Development and Tourism pursuant to Section 113(8) of the Companies Act 1981 (the ‘Act’) of the same date, please be advised that effective September 14, 2012, the Company shall be deemed to be ‘Bermudian’ pursuant to Section 113 (cd)(i) of the Act. Further, the Company, as a company to which Section 114(1)(e) of the Act applies, shall thereby no longer be subject to the requirements of Section 118 of the Act.”During a Budget debate meeting in March, Business Development and Tourism Minister Wayne Furbert said that a number of “targeted sectors” would be exempted from the rule which requires at least 60 percent Bermudian ownership.The easing of the restrictions will make it easier for BSX-listed companies such as KeyTech, BF&M Ltd, Argus Group to raise capital, by giving them unrestricted access to foreign investors.“These companies would be targeted sectors such as telecommunications, energy production, insurance, green initiatives to do with energy, banking, hotel development, general technological advancement, airline and shipping, to be exempted from the 60/40 restriction,” said Minister Furbert.