Parliament could next year be asked to consider legislation to allow the establishment of exempted limited liability partnerships.

A key source of concern internationally because of society's increasing litigiousness, at least one other offshore jurisdiction has already passed legislation that has attracted much interest.

Firms of lawyers and accountants in particular have developed an increasing interest in recent years in protecting themselves from lawsuits the partnerships found themselves exposed to because of clauses of joint and several liability.

A report will soon be presented to Government from a Bermuda International Business Association (BIBA) Committee.

Chairman of BIBA's Legislative Change Committee, Tom Conyers, said: "The report is due this month or early next month for the Ministry of Finance's consideration. If they are comfortable with the items on it and it could be fit into the legislative timetable, I would hope that the changes would be agreed to in the spring session.'' A key provision would allow international partnerships to form in Bermuda under a limited liability structure.

Mr. Conyers said: "There has already been legislation passed in Jersey to permit limited liability partnerships to form there. Some of the large UK accounting firms have already said they want to take advantage of that.

"In the US, limited liability partnership legislation has existed since 1990 in various states. A number of the larger law partnerships are limited liability partnerships. So, there are clear precedents both onshore and offshore.

"Now, from a local point of view, that's really something the individual professions would have to take up on a case by case basis. I don't know where the Government is in terms of considering opportunities for Bermuda firms to share in the benefits of limited liability partnerships.

"Local professions would like to achieve that, but I couldn't say exactly where it sits in the current process of discussion.

"Right now, we are looking at it from an international Bermuda product point of view. There are some good reasons why we should provide the product.

Whether access to the product will be permitted locally will be a Ministry of Finance decision, and I honestly don't know how they feel about that.

"Bermuda has become more of a litigious society, driven largely by the international environment and certain expectations.

"But I have tried to make a clear separation of the two, because I don't want the second issue to get in the way of getting the first one. The first one will be useful to Bermuda as a jurisdiction. If the Ministry has a problem with the second point, let's at least get the main job done.'' BIBA's Companies Act committee succeeded last summer in obtaining changes to the Companies Act relating to the role of local directors and secretaries in international companies. There were also a number of provisions to assist in controlling the spiralling litigation and insurance costs associated with servicing international business and a change to the section dealing with financial assistance to eliminate certain legislative impediments faced by companies involved in initial public offerings and takeovers in the North American marketplace.

There were also a number of technical changes designed to facilitate certain types of routine corporate transactions.

CHANGES AFOOT -- Tom Conyers HOUSE OF ASSEMBLY HOA LAWYERS LEG