Corporate Governance 2018 - Bermuda

1 SETTING THE SCENE - SOURCES AND OVERVIEW

1.1 What are the main corporate entities to be discussed?

The main corporate entities in Bermuda are private companies limited by shares. There are two types of private companies limited by shares:

• exempted companies ("exempted companies"): which are companies that are owned by non-Bermudians and which carry on business outside Bermuda from a principal place of business in Bermuda; and
• local companies ("local companies"): which are companies that: (i) are controlled by Bermudians, where at least 60% of the total voting rights in the company are exercisable by Bermudians and the percentage of directors and of beneficial ownership in the company's shares is not less than 60% (known as the "60/40 Rule"); or (ii) have a licence from the Minister of Finance of Bermuda to carry on business notwithstanding that the criteria in (i) is not met.