The Government is introducing new legal frameworks to position Bermuda as a leader in a global environment where the concept of “stakeholder capitalism” is being embraced by traditional for-profit companies and capitalist societies.

Jason Hayward, the Minister of Economy and Labour, said that “two landmark legal reforms” provided for a “pivotal moment in Bermuda's journey” that will “cement our position as a forward-thinking and responsible global financial centre”.

Mr Hayward introduced the Benefit Entities Act 2025 and the Trustee Amendment Act 2025 to parliamentarians in today’s sitting of the Lower House.

The first Bill, he said, will introduce a new legal framework for use by companies, limited liability companies and limited partnerships that are looking to change the way they manage their business operations to be more beneficial to society and the environment.

Typically referred to as public benefit companies, these types of entities are committed to profit and non-profit objectives.

Mr Hayward said: “By creating a Benefit Entities framework, we are not just positioning ourselves to attract a new kind of business; we are creating an ecosystem in which companies can optimise short-term profits for shareholders, while also seeking long-term value creation for all stakeholders.”

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Mr Hayward said Bermuda will likely be the first offshore jurisdiction with a dedicated benefit entity framework.

In addition, he said a critical amendment was being made to trust law which empowers trustees to factor environmental, social and governance criteria into their investment decisions without fear of violating their fiduciary duty.

He told Parliament: “Bermuda will differentiate itself as a jurisdiction through enactment of the Trustee Amendment Act 2025.

“This Bill will establish Bermuda as an early adopter of statutory flexibility and protection for trustees to consider certain non-financial factors when investing trust assets.”

He said there is wide trust industry support for updating the trust law to accommodate evolving views regarding the impacts of investments and corporate governance, and Bermuda will take a leading role among her competitors as an early adopter of these types of changes.

• For more on the Benefit Entities & Trustee Amendment Acts 2025 and the Minister of Economy and Labour’s speech to Parliament, see Related Media