Extensive new changes to Bermuda's partnership legislation were passed in the Senate on 29 May 2015 and are expected to become operative in due course.
The amendments are designed to broaden Bermuda's appeal as a premier jurisdiction for private equity and secured transactions generally, and to provide greater certainty and flexibility for those looking to use Bermuda as their jurisdiction of choice for sophisticated transactions.
The existing partnership legislation is amended in several key areas:
- Partnerships can now continue into Bermuda;
- Partnerships can convert into a company;
- A register of charges for partnerships with separate legal personality has been created; and
- The existing safe harbour provisions for activities of limited partners when a limited partner is consulting or advising a general partner with respect to the business of the partnership have been clarified.
The breadth of these changes demonstrate Bermuda's standing as a premier jurisdiction which, through collaboration between industry and the Government, continuously evolves legislation to quickly respond to market evolution in a considered and well-regulated way
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