The House of Assembly approved two pieces of legislation yesterday aimed at supporting companies and trusts who wish to invest in the public interest.

Jason Hayward, the Minister of Economy and Labour, said that the Benefit Entities Act 2025 would allow companies, limited liability companies and limited partnerships to operate as public benefit entities.

“Public benefit entities are for-profit businesses that are legally structured to pursue one or more public benefits in addition to their ordinary business activities,” he told MPs.

Under the regulations, companies would be able to sign on, either at initial registration or any time after it begins operation.

They are at liberty to identify one or more specific public benefits they wish to pursue including the arts, charities, education, health, religion, sport or the environment.

The business operators will be required to conduct business in a manner that is responsible and sustainable, considering the interest of its stakeholders and pursue an overall positive effect.

Companies must also, unless otherwise approved, provide shareholders, LLC members or partners with an annual benefit statement describing how the business seeks to operate.

“We are seeing more individuals and businesses seeking out ways to preserve natural resources, reduce the effects of climate change and make other positive impact through their business activities,” Mr Hayward said.

“This product aims to attract investors who wish to pursue positive social and environmental impacts along with financial returns.”

Mr Hayward added that the beneficial entities option would be good for those who wish to align their business operations with their values and socially-conscious customers and investors.

Scott Pearman, the Shadow Attorney-General, said that similar benefit corporations have been introduced in several US states, while Community Interest Companies have come into force in Britain.

He added that becoming a benefit entity would offer a “shield” to directors.

“There are some shareholders out there who, if a director was to invest in things that are responsible, sustainable or environmental, they might come along and say this is a company and you are supposed to be maximising my returns,” Mr Pearman said.

“By recognising that a company is a benefit company, it creates a shield for directors against shareholders who might seek to bring lawsuits to criticise the directors for those activities.”

He said that the legislation would “add to Bermuda’s arsenal” compared with other jurisdictions, adding that benefit corporations are known to have a happier workforce with increased customer loyalty.

Mr Hayward meanwhile described the Trustees Amendment Act as a “companion” to the Benefit Entities Act, as it would clarify the ability of trustees to make socially minded investments.

“Responsible investment practices have become increasingly important in recent years as more investors are seeking out opportunities to make positive impacts through their business activities,” he said.

Mr Hayward said that the legislation would permit trustees to pursue investment strategies that consider broader social and environmental implications as well as financial returns.

“This Act seeks to provide legal certainty to trustees to align investment decisions with the values and wishes of settlors and beneficiaries regarding the impact of investment on society and the environment and the governance of entities in which the trustees might invest,” he said.

Mr Pearman supported the amendments, stating that Bermuda is the pre-eminent trust jurisdictions in the world and leading the way with the amendments.

He added: “This is a very useful addition to our trust laws, and I think it will be welcomed by trustees who will now know that if they have socially-conscious beneficiaries or socially conscious settlor who wishes to use trust assets for the greater good, those trustees may do so knowing full well that they are permitted by Bermuda’s legislation.”