MPs passed a housekeeping bill to help cut red tape for companies yesterday.

Finance Minister Eugene Cox said the Companies Amendment Act 2002 would "help promote Bermuda as a reliable but responsive jurisdiction to carry on business".

The bill apes overseas legislation allowing companies to send summarised rather than full financial statements to its members as a cost saving measure.

The bill will also streamline the incorporation process - with the minister's consent only being required for companies carrying out restricted activities. These are companies which carry out such services as wiring money, cashing cheques, changing currency, handling money orders and credit cards, administrating payment over the internet and offering professional services in law, medicine and architecture.

It also relaxes the obligation for companies to file a prospectus before issuing shares. Mr. Cox said: "In this day and age of issues taking place in different parts of the world, the need to file a prospectus before any issue can take place may delay the process.

"Accordingly this clause will amend the act by providing that a company may file a prospectus as soon as reasonably practical after the publication.

"With this change there is no substantial diminution of investor protection if the filing takes place immediately after the issue has commenced."

He also announced a relaxation on keeping information on shareholders. Companies will not have to record a date when a person becomes a member. The time period for a company laying down a financial statement before its annual meeting has been reduced from seven days to five days.

Stock exchange listed companies can now send out summarised financial statements but shareholders must be told it is only a summary and they can elect for the complete one.

Summarised statements must be sent out 21 days before the AGM said Mr. Cox.

Mr. Cox said the act gave the minister new powers to assist foreign financial regulatory bodies similar to the Bermuda Monetary Authority but only after getting assurance that information will not be then passed on.

He said: "The Minister may not request any person make a statement unless the Minister is satisfied that any statement given cannot be used in evidence in any subsequent proceedings.

"This deals with the protections against self-incrimination and appropriate immunities."

People ignoring requests for information can be fined $25,000 or jailed. The act will take affect on February 14, 2003.

Opposition leader Grant Gibbons welcomed the bill and said Bermuda needed to regularly update financial laws to keep pace with the rest of the world.

He said: "Over the last few years I thought we could have moved a lot more expeditiously to streamlining the incorporation process."

More from the House of Assembly in Monday's Royal Gazette.