The Bermuda Government today tabled limited liability company ("LLC") legislation closely modeled on the Delaware equivalent. LLCs are a hybrid entity combining corporate and partnership characteristics which originated and are widely used in the United States. While a few non-US jurisdictions have made provision for LLCs in their laws, such laws generally incorporate non-US terms and concepts which may be unfamiliar to US counsel.
The core of the new Bermuda LLC legislation is based largely on the corresponding provisions from the Limited Liability Company Act in Delaware. It is anticipated that this approach will be welcomed by US counsel, as Bermuda LLCs will be familiar to them in both form and substance and will benefit from existing practice and jurisprudence in relation to the corresponding Delaware provisions.
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