Budget: Bill To Change 60/40 Ownership Rule
“We will introduce a bill that will reduce the required ownership of a local company from 60% Bermudian to 40% Bermudian, “Minister of Finance Curtis Dickinson said as he delivered the 2020 Budget in the House of Assembly today.
The Budget report said, “We have also made progress in reducing regulations and red tape to stimulate investment and promote competition in the Bermuda economy. We have eliminated payroll taxes for start-up businesses as well as having streamlined the process for starting new local companies.
“In this budget session, we will introduce a bill that will reduce the required ownership of a local company from 60% Bermudian to 40% Bermudian, while maintaining the requirement for the Board of Directors to be at least 60% Bermudian.
“We have supported competition in the permission of international law firms to operate in Bermuda and have been aggressive in courting additional financial services institutions to setup in Bermuda to provide competition to established players.”
A live blog on the Budget can be found here, and all our coverage of the 2020 Budget here.
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A company is a piece of paper. It does not carry a passport. It is simply an organization that supplies goods and services to the public.
60 40 made no sense. Neither does any other ratio.
I don’t think this a good idea to go across the broad and should be limit by company type and composition. when the legal weed come into play companies that have been setup for years while weed been still taboo in Bermuda we come her and take us of the Weed money in the tourist sector
Now who is giving away Bermuda?
Stay tuned more to come watch.. they kicked up about the airport being giving away.
#Hearditfirsthere.
60/40 but board members 60% Bermudian? No thanks..
Exactly. One without the other is dumb
no real business nor company sense in that lot. Poor FM strings being pulled? I am going to buy or create a company presumably to make money and benefit the employees and island here then be told by a 60 40 bermudian board how to run it, not likely. Unless the board is UN BIASED, has common sense and NOT INFLUENCED NOR DIRECTED by look under the hood types than maybe. Dictators looking for a way in, and money grab from directors fees and dividends. No thanks
This move will not work.
Scrap this archaic protectionist rule. Things have moved beyond the need for this.
No one will invest in a company where their capital cannot be represented by equal control in the entity’s direction.
This is just an example of busy work. Imply that something big is happening when in fact it isn’t.
Scrap this rule all together now!!
I think a caller to the Shirley Dill show(stormin normin) could run this Island better then the majority of our politicians….he tells it like it is.
Probably killing these guys to have use the opposition’s idea..
Mean while at the bust stop..
YOU JUST GAVE AWAY BERMUDA MORE THAN YOU’VE ALREADY DONE…
PLP talk all for Bermudians and then do everything that flies in the face of their talk, They stirred up outcry at the airport deal and now give away control over Bermuda to foreigners,
Nope, still not going to invest my money.
Just laying the foundation to sell another piece of Bermuda. BELCO next.
The comment “proposed owners will not get approval for any increase in energy costs” nothing more than political words to soften the inevitable decision when granted. Just get on with it so Bermuda can get some real direct foreign investment.
After the BTA, will the Minister if Hime Affairs follow his cabinet colleague snd look into the effectiveness or conflicts of interest in the RA. That must be a sacred cow with the friends and family program. Seems ironic that the RA can increase their costs by another 1M paid by telecom and energy consumers yet cost of living won’t go up. How does that work ?
This is window dressing and will have no impact.
100% only, like ANYWHERE ELSE IN THE WORLD
We are sinking…..
They already sold us to foreigners when they but us in debt.
The folks who do the math can say what time it is. Tourism and construction have been struggling for a number of years , and they are both good industries , finance is a third pillar, and that appears where we are at.
Perhaps the idea is to get a govt mp or cs installed on each board or have a friend of family apointed, a step towards already established dictatorship. nJust saying
If a local company wants to be protected by 60/40 kelt then. If one doesn’t let them apply and pay a an application fee to be exempted from it.
Just don’t make it mandatory.
Simple solution. Problem solved.