Isle of Man Introduces Treasury Share Regulations

In a move to make publicly traded Isle of Man companies more competitive, the Isle of Man has introduced regulations to permit publicly traded companies to purchase and hold a maximum of 10 per cent of their own shares in treasury.

The regulations, which came into effect on 1 May 2010, give a company the ability to reduce the costs of capital maintenance as it can repurchase and hold shares as treasury shares, instead of having to cancel the shares on repurchase.

Allan Bell, MHK, Minister for Economic Development, commented, "These regulations illustrate the ways in which the Isle of Man Government is developing its regulations to enable businesses to conduct their affairs in a more efficient and competitive manner.