The lawyer for Conyers Dill & Pearman, legal advisor for Bermuda Fire & Marine Insurance Co. Ltd. at the time of the 1991 reorganisation, yesterday in Supreme Court questioned the company's former chief accountant and secretary on the details of meetings he attended.

John Patterson, who was manager of administration, company secretary and chief accountant of Bermuda Fire, could not remember much of the meetings held in 1990 and 1991.

As company secretary Mr. Patterson attended most of the board and finance committee meetings. He also dealt with Conyers Dill & Pearman and auditors Cooper & Lines in working out the details of the reorganisation.

Geoffrey Vos, lawyer for Conyers Dill & Pearman, sought through questioning Mr. Patterson to establish the chain of events leading up to the reorganisation and the firm's role as legal advisor.

Mr. Patterson is appearing as a witness for defendant BF&M. Conyers Dill & Pearman argues that the firm give proper legal advice in relation to the reorganisation.

Mr. Patterson acknowledged that the reorganisation proposals eventually adopted by the company were different from the one proposed by Conyers Dill & Pearman.

Accountant questioned He admitted that at times he didn't fully understand all the details of the reorganisation.

"To be truthful at times they lost me,'' he said.

He agreed that under the instigation of finance committee member Donald Lines, board directors had rejected Conyers Dill & Pearman and Cooper & Lines' advice to create two sister companies under a holding company in favour of creating a completely separate company called BF&M Ltd. for the profitable domestic business.

Mr. Patterson also acknowledged Conyers Dill & Pearman lawyer John Collis advised directors on more than one occasion that they had to be sure enough money was left behind in Bermuda Fire for creditors.

He agreed that Conyers Dill & Pearman had advised that a proper valuation of Bermuda Fire's liabilities was necessary before directors could go ahead and approve a special dividend of stock in BF&M to shareholders.

Mr. Patterson joined Bermuda Fire in 1955 as a clerk. He became chief accountant in 1973, and was promoted to manager of administration and company secretary in 1985.

Mr. Patterson said as chief accountant he believed that at the time of the reorganisation there would be sufficient assets remaining in Bermuda Fire to pay a share dividend to shareholders and meet actuarial firm Tillinghast's reserving requirements.

BUSINESS BUC