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, making publicly traded Isle of Man companies more competitive.
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, said, “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. The change will help to make publicly traded companies on the Island more competitive, which we welcome.”
Anne Craine MHK, Treasury Minister, said, “I am very pleased that we were able to move ahead with the introduction of these Regulations. It is a progressive development that should assist the industry by making the Isle of Man a more attractive place for investors to do business. Treasury, together with the Department of Economic Development, is keen to work with all areas of the Finance Sector to promote the Island and its reputation and this is a good example of the success of our working partnership.”
Jeremy Bridle, Fund Management Association, said, “Following industry requests, the regulatory sub-committee confirmed the need and advantages provided by these new regulations and is pleased that the Policy Division of the Financial Supervision Commission were able to draft and implement the new legislation in a timely manner.”
* Incorporated under the Companies Act 1931
** In April 2010, the Companies Act 1931 to 2004 (Treasury Share) Regulations were approved by Tynwald and came into operation on 1 May 2010
