Government yesterday won support from Opposition MPs over a batch of legislation aimed at luring more international business to Bermuda.

The House of Assembly heard the legislation would also maintain the Island's excellent reputation overseas.

The bills passed unanimously after second and third readings included: The Overseas Partnerships Act 1995; The Exempted Partnerships Amendment Act 1995; and The Companies Amendment Act 1995.

The Mutual Companies (Non-Application of Companies Act) Regulations 1995, which were up for consideration, also won approval.

Senate approval and Royal Assent are required before the bills become law.

Finance Minister the Hon. David Saul introduced the legislation, which attracted little comment from the Progressive Labour Party.

He started with the Mutual Companies Regulations, explaining the legislation would remove the need for a public register of so-called mutual companies.

These are companies formed by a group of businesses for their mutual benefit, and as an alternative to an insurance firm.

Instead of paying insurance premiums, these businesses contribute to their own "mutual company'' and cover themselves.

This way they can cut down the cost of forking out for premiums -- something particularly of interest to businesses who feel they are not exposed to great risks.

Dr. Saul gave the example of a shipping company looking at the cost of insuring vessels for catastrophes, such as tornadoes.

Naturally, the company would try to get the best insurance rate, he said.

"Imagine, the shipping company said no to paying the insurance premiums, believing its ships were sound, and that as a company it did not take risks.

"What the company says is this: `let's form a mutual company'. So shipping company A goes to shipping company B,C,D,and E.'' The companies then decide to take the insurance risks entirely on themselves.

Said Dr. Saul: "Instead of paying any premium to a third company, they don't pay premium, but pay into a mutual company and take the risk themselves.'' If a catastrophe happened -- such as a ship went down -- the mutual company would pay the costs.

Up to now, said Dr. Saul, those involved in mutual companies were required to keep a public register.

But businesses which formed mutual companies wanted protection.

"Under the example I gave, the shipping companies don't wish to have their private business known by all and sundry.

"They are covering themselves and mutually accepting the risk.'' Dr. Saul stated by closing the public register, Government was not sweeping away controls.

The Finance Ministry and the Bermuda Monetary Authority would still police such mutual companies.

Dr. Saul said information could not be hidden from the Government.

But companies would be safeguarded against people walking off the street, seeing their names on the register, and then badgering them, and putting them on mailing lists.

"If they are going to be bothered by this public nuisance, they will go elsewhere.'' He added: "We are giving them some protection, and at the same time we are protecting Bermuda's reputation.'' Shadow Finance Minister Mr. Eugene Cox welcomed the legislation, saying the move to safeguard confidentiality was "legitimate''.

But it was important for Government to maintain controls.

Dr. Saul then turned to The Overseas Partnerships Act.

He said MPs were aware of the international trend for individuals in the business world to form partnerships.

Under this bill, overseas partnerships would be allowed to operate in Bermuda.

Dr. Saul said in many instances partners lived in different jurisdictions, each with differing legal and regulatory environments, and a new vehicle in Bermuda was needed to allow them to set up a registered office here under one law.

"This bill is meeting the needs of international clients. Hopefully, it will encourage them to come here.

"We have been losing out on business because we haven't had a vehicle to allow them to come here.'' Dr. Saul pointed out the legislation also contained important controls.

The bill prohibited overseas partnerships from carrying on business in Bermuda without a permit.

Under it, the Finance Minister had unfettered discretion as to granting or refusing permits.

Mr. Cox said the PLP had no objection to the legislation, but again it was crucial for Government to keep tabs on such partnerships coming here.

Shadow Minister of Works & Engineering Mr. Walter Roberts asked Dr. Saul to explain why groups of overseas businessmen should want to set up in Bermuda.

Dr. Saul stressed there were many benefits.

For instance, Bermuda received revenue -- accountants, lawyers and banks benefited from partnerships coming here.

Bermudians also learned about international business, and were given opportunities to enter that field.

For the overseas businessmen, Bermuda offered tax incentives, Dr. Saul continued.

Legislation to help international business could also be passed swiftly.

This was not the case in bigger jurisdictions, such as the United States, where legislation went through a lengthy process before becoming law.

Dr. Saul then explained The Exempted Partnerships Amendment Act.

In any business partnership, there was the general partner and the limited partners.

The general partner had a management role, carrying overall responsibility for the success or failure of a business.

Limited partners were those who were generally responsible for providing money for that venture.

Dr. Saul said sometimes limited partners wished to pull out of a business.

Presently, any change in limited partners in a business required the approval of Government, and had to be Gazetted.

Under The Exempted Partnerships Act, however, this requirement was removed.

"It makes good business sense for all partners involved.'' Currently, said Dr. Saul, Bermuda was losing business because of this bureaucratic hurdle.

Mr. Cox agreed with the improved flexibility in the arrangements.

Finally, Dr. Saul focused on the Companies Amendment Act, which would protect the privacy of mutual fund investors.

The legislation aimed to lift the requirement for the register of members of mutual funds companies to be open to public inspection.

Dr. Saul described The Companies Amendment Act as a "hardy perennial''.

The Act was amended regularly to keep Bermuda's legislation on the "cutting edge,''.

The registers, a list of a mutual funds unit holders, would be accessible by Government, the Bermuda Monetary Authority (BMA) and other inspectors but the purpose of this provision was to protect the privacy of investors, said Dr.

Saul. Mutual funds are funds run by an investment company that raises money from shareholders and invests it in stocks and bonds.

Investors are charged a fee -- typically one percent or less of assets per year -- for having their portfolio professionally managed.

MINISTER OF FINANCE -- The Hon. David Saul.