In a filing to the Bermuda Stock Exchange, Ascendant Group Limited confirmed that — effective 22 October 2012 — the company is no longer subject to the 60/40 rule.
Ascendant is the parent Company of companies including BELCO, AG Holdings Limited, Bermuda Gas & Utility Company Limited, PureNERGY Renewables Ltd. and inVenture Limited.
The Companies Act was recently amended to allow for companies fitting certain criteria to apply for Government’s permission to have over 40% of their shares foreign owned.
The letter to the BSX stated: “Further to our letter to you of October 1, 2012, informing you of our notification to the Minister of Business Development and Tourism pursuant to Section 113(8) of the Companies Act 1981 (the “Act”) on the same date, please be advised that effective October 22, 2012, the Company shall be deemed to be “Bermudian” pursuant to Section 113(cd)(i) of the Act.
“Further, the Company, as a company to which Section 114(1)(e) of the Act applies, shall thereby no longer be subject to the requirements of Section 118 of the Act.”
KeyTech — who subsidiaries include the Bermuda Telephone Company, Logic Communications, Bermuda Yellow Pages & WestTel – have already been exempted from the 60/40 rule.
Speaking on the matter previously, Business Minister Wayne Furbert said: “This Government is committed to enabling foreign investment in Bermuda’s companies that will drive development and innovation in our infrastructure, technology and capital market as well as create new employment opportunities.
“Bermuda may be another world but we are part of the global economic community in which borders restricting capital investment have become all but irrelevant. We must allow our local companies access to foreign investment that will benefit everyone in Bermuda.”
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