opportunity for some international companies to escape unwanted taxation from other countries, like the US.

As Mr. Thomas Conyers, current chairman of the Bermuda International Business Association (BIBA) committee reviewing such matters, puts it: " It will allow US multi-national companies to structure its operation in a tax efficient manner. There are tax benefits.'' But business and Government authorities point to current legislation in other countries (Cayman Islands, Turks and Caicos) as having the same provisions, and, point to current Bermuda law that allows for such companies to manoevre their way into the same situation, but through a more cumbersome process.

According to the bill's explanatory memorandum the proposed changes, due for debate in the House of Assembly next week, were designed "to make provision for the formation of companies with unlimited liability, for the re-registration of companies limited by shares as unlimited liability companies, for the formation of companies of fixed duration, for the amalgamation of a foreign corporation with an exempted company without the need for prior continuation of the foreign corporation as an exempted company, and for other purposes.'' The Minister of Finance, the Hon. David Saul, commented: "These proposed amendments are keeping us on the cutting edge for changes and requirements worldwide. We had been remiss in the past and we were told that we were behind on this, because we were affecting the required changes for companies by dealing with each company through a private bill in Parliament. It was a very time consuming and cumbersome process.

"This will cut down on the private bills and also allow companies to be formed faster.'' Dr. Saul, much like others asked about the changes, played down any potential tax benefit to foreign companies. He said, "Any company can be formed and wind itself up. They can do it for very bona fide reasons. But there is a worldwide demand for unlimited liabilities in companies.

"And a BIBA committee had been working on the issue involving limited duration and fixed duration companies.'' Bermuda Monetary Authority general manager, Mr. Malcolm Williams, quite frankly noted that whether or not legislation enacted in Bermuda allows a foreign entity to improve its tax position to its own government would be a matter for the foreign government to consider.

Mr. Williams stated, "The amendments are forward looking. They are making our provisions in law internationally attractive. Bermuda's attractiveness (to foreign companies) has been because of its willingness to update legislation to ensure its competitive nature. "These changes keep Bermuda in the respectable niche, but still has us looking forward.'' Meanwhile, Mr. Ray Moore, of Jardine Matheson, said that the proposals were a positive response to the dialogue between business and government over "rather old fashioned'' Bermuda company laws. Mr. Moore continued, "Other jurisdictions are even more aggressive in changing their law to try to get business. I had a fax from BVI (British Virgin Islands) which said that the government had just circulated something saying they want to be more pro-active in marketing their jurisdiction. `Tell us what we can do', they asked. "Bermuda is striking a very good balance between retaining the structure that makes us respectable and being flexible when circumstances change and overseas business needs some help. I think we have a good dialogue.'' Former chairman of the BIBA committee that studied the matter, Mr.

David Doyle has circulated a brief on the bill in which he states "The enactment of the bill, with the Company Amendment Acts of 1992 and 1993, will substantially complete the task of modernising Bermuda's company law.''