Association (BLSA), organisation spokesman Mr. Tim Marshall said yesterday.

But that number could grow as word of the newly-formed organisation spreads.

Since the BLSA was formed on Thursday, the organisation has mailed out membership information to the 1,001 shareholders facing legal action by Bermuda Fire & Marine Insurance Company Ltd. joint liquidators.

At this early stage, many shareholders have yet to receive the letters sent by the BLSA, he said.

In fact, many have not yet been served writs by the liquidators, Ernst & Young in Bermuda and London, said Mr. Marshall.

Yesterday, the BLSA announced it had set a telephone inquiry service.

That service was fielding about five calls per hour yesterday, Mr. Marshall said.

The BLSA, chaired by Sir John Sharpe, will coordinate and finance the defence of the liquidators' claims for those who join the association.

Mr. Michael Darling, Mr. Charles Mann and Mr. Francis Patterson are also founding members of the association.

Liquidators of Bermuda Fire & Marine were given court approval in November to press their case against about 75 percent of current BF&M common shareholders.

Liquidators are seeking control of shares distributed in the form of a dividend in connection with the 1991 reorganisation of Bermuda Fire & Marine.

Liquidators claim the reorganisation was fraudulent.

Liquidators are seeking to return the shares to Bermuda Fire & Marine for the benefit of creditors.

BF&M was set up to assume the profitable domestic insurance business of Bermuda Fire & Marine.

Joint liquidator Mr. Tony Joaquin with Ernst & Young in Bermuda, could not be reached for comment.

The Appeals Court will hear from BF&M lawyers the week of March 4 as they attempt to overturn the decision allowing the liquidators to serve writs against 1,001 BF&M shareholders.

Liquidators are not seeking any damages from the shareholders.

Mr. Marshall said that the latest move by liquidators -- to include a share transfer form with the serving of writs -- is unacceptable at this time.

"It is inappropriate to be including a share transfer form in the context of the liquidation (proceedings) because shareholders may not be represented by a lawyer,'' said Mr. Marshall.

"Most are (currently) unrepresented and we do not want those shareholders to fill out share transfer forms without first being advised properly,'' he said.

"Some might fill out the form not understanding the legal implications,'' he said.

The shareholders should wait for the outcome of the legal proceedings, he said.

There is no "legal rationale'' for transferring shares, he said.

There is sound legal advice indicating BF&M has a solid defence against the intentions of the liquidators, he said.