it will gain exemption from the Island's rule restricting foreign ownership to 40 percent, shareholders were told yesterday at the company's annual general meeting.

The bank submitted an application earlier this month for the exemption under the provisions of recently passed legislation and is waiting on a response, company chairman Eldon Trimingham told about 80 shareholders in attendance.

The bank wants to gain exemption so as to make a secondary listing on the NASDAQ stock exchange. The bank has stated in the past that it needs the exemption in case it needs to raise capital for further overseas expansion.

Opponents of such an exemption have stated that such an exemption will open the way for foreign ownership and control of Bermuda's companies and economy.

Mr. Trimingham also reported that the bank had amended its rules so that the board chairman will no longer sit as chairman of any committees as he has usually has in the past.

"This change provides greater specialisation and concentration on each committee's responsibility while at the same time, as a result of overlapping membership, always preserving the necessary overall focus,'' he said.