Butterfield Bank shareholders have approved a proposed ten-for-one reverse share split.

At a special meeting held today the proposal was approved with the requisite number of votes.

Ordinary shareholders will receive one new ordinary share for every ten they currently hold.

The reverse share split will become effective on September 6.

At the special meeting, a vote on a second proposal calling for amendments to the bank’s by-laws was also passed.

The proposals were put to shareholders as the bank contemplates an initial public offering on the New York Stock Exchange.

The reverse share split is needed for the bank to meet the NYSE’s requirement that IPO shares must have a minimum initial trading price of $4.

Today, the bank’s ordinary shares closed at $1.90, up 12 cents, on The Royal Gazette/BSX Index.

The bank said it intends to keep its shares listed on the local exchange in addition to the proposed New York listing.

Butterfield Bank has filed a registration statement relating to the IPO with the US Securities and Exchange Commission. The total size of the proposed IPO has not been revealed, however a guideline number in the filing document indicates a maximum aggregate offering price of $100 million. The registration statement has not yet become effective.

Separately, the bank has announced that David Zwiener has been appointed to the board as a non-executive director.

Mr Zwiener is a senior operating executive with Carlyle Group’s Financial Institutions Group, and he will serve as one of Carlyle’s two representatives on the Butterfield Board.

Carlyle Group and a number of other investors injected $420 million into the bank in 2010 as Butterfield restructured and “de-risked” its balance sheet.

Entities affiliated with the Carlyle Group hold 22.7 per cent of the bank’s common shares, with the majority of these owned by Carlyle Global Financial Services Partners.