alternative'', Opposition Senate leader Sen. Alex Scott told the Upper House this week.

He praised Finance Minister the Hon. David Saul, who he said had recognised this.

But he slammed Education Minister the Hon. Clarence Terceira, who he said had suggested that companies were thinking of leaving if the PLP won the election.

"We have every reason to believe that this is not so,'' he said. Sen. Scott was speaking as senators gave their approval to a law they were told would help keep Ber muda's position on the international business scene.

Introducing the 1993 Companies Amendment Act on Wednesday, Sen. Wendell Hollis said it was designed to make legislation friendlier to international companies.

It will allow the setting up of personal-holding or one-shareholder companies.

It will also permit the election of company directors for more than a year and relax strict rules for the fixing of a company seal on contracts.

Sen. Hollis said Sen. Joe Johnson (Ind) was chief executive officer of two new international reinsurance companies, showing a Bermudian could get to the top of world-class firms.

But Sen. Scott said he was worried that the large majority of Bermudians were not fully aware of international business.

The sector was not "Bermuda-driven''.

It was not wise to have an industry that made up half the economy benefiting Bermudians only by a trickle-down effect.

Bermuda needed to be cautious and conservative with such legislation.

Opposition Sen. Ira Philip called for the Premier and his Cabinet to apologise to international companies in Bermuda for a "nasty rumour floated by'' Mr.

Terceira.

"We must refute the nasty rumour floated by Cabinet member Dr. Clarence Terceira that the leaders in the international companies business have their bags packed and are ready to leave Bermuda within 24 hours if the PLP become the ruling party,'' he said.

"That is a damnable lie and it maligns the integrity of international businesses that are here.

"It makes them seem as if they are gangsters here to launder money and do other mischievous deeds as opposed to legitimate business.

"We in the Progressive Labour Party, in Government or out of Government, would do nothing to upset the equilibrium and the equity of this very important facet of our economy.

"We believe the Premier and his Cabinet owe the international businesses an apology.'' Sen. Philip stressed that the "propaganda that the United Bermuda Party is responsible for growth in this country'' and any other Government would ruin Bermuda, must stop.

Independent Sen. Joe Johnson , who thanked Sen. Hollis for his "kind'' remarks, likened the bill to "taking one's car to the garage for an annual check-up before licensing''.

And he said while he did not have objections to the bill, he had minor concerns.

Those concerns, Sen. Johnson said, included the allowance for single-shareholder companies and their accountability.

"However,'' he said, "I support these changes. I recognise that they are necessary. And it is necessary to keep the (companies) Act up with the times.'' Government Sen. Jerome Dill stressed that each of the amendments "are geared toward putting Bermuda on the cutting edge'' of international business.

He said while UK law does not allow for single-shareholder companies, it was a part of legislation in Canada and Barbados.

"More and more we're finding that individuals are saying we really do want a vehicle in which I will be the only shareholder,'' Sen. Dill noted.

And he said Bermuda had nothing to lose by having single-shareholder companies.

"At the moment the minimum (number of shareholders required in companies) is three,'' Sen. Dill said. "But the individual who wants to own all the shares in his company can achieve this through the back door currently what he will be able to do through the front door with this amendment.'' Independent Sen. Norma Astwood asked to what extent Bermuda would profit from the changes and what, "if in any way'', Bermuda stood to lose from the changes.

Sen. Hollis said no one could quantify the degree to which Bermuda would profit.

"But one will hope that the degree of growth in international business, highlighted in the Bermuda Monetary Authority report, will continue,'' he said.

"I don't think we will suffer any loss at all from the amendments. They would not have been put forward in the first place if the drafters of the amendments thought they would.'' Sen. Hollis also pointed out that decreasing the number of shareholders in a company would not affect any employees of international companies.

"Companies likely to have one shareholder, such as personal holding companies and subsidiaries, are the types of companies that do not employ persons anyway,'' he said.

"But by allowing single-member companies we increase the marketplace and therefore increase the need for managers and other employment opportunities.'' Responding to Sen. Scott's concerns, Sen. Hollis said single-member companies must have at least two directors by law and are required to have annual general meetings.

However, he agreed with Sen. Scott that more could be done to educate people about the importance of international business to Bermuda.

But he said the BMA report and Bermuda International Business Association helped to do this.

"At one time the exempt company business was looked at as a closed shop,'' Sen. Hollis said. "But now if you look around Bermuda today you will see that that has changed.'' He also said he welcomed the support the PLP shows to international business.

"But,'' Sen. Hollis added, "I think it must be consistent.

"Too often there is a belief that international companies must employ Bermudians on all levels and that can send fear to businesses who plan to come here and have some of their own in certain positions.'' Sen. Wendell Hollis Sen. Joe Johnson.