Amendments to a piece of legislation governing the Island's international businesses were passed in the Senate yesterday without objection.

The Companies Amendment Act affected all areas under the jurisdiction of the original Act, explained Government Senate Leader Lynda Milligan-Whyte.

The Act changes the rules for exempted companies and makes company officers and auditors proportionately liable for damages instead of equally liable, unless fraud or dishonesty were involved.

Companies are now allowed to lend money to people to buy their shares provided they remain solvent afterward.

And a section requiring that at least two directors of a company be resident in Bermuda has been amended to give firms more flexibility.

Non-Bermudian firms are also given the ability under the Act to merge with local companies and two or more firms can now amalgamate at one time. These amendments made the Company Act more flexible while ensuring Bermuda remained a competitive jurisdiction, Sen. Milligan-Whyte continued, adding that they had come after a great deal of consultation.

Opposition Sen. Terry Lister said the amendments were healthy and useful because they kept the legislation current and innovative.

Not only would it benefit international businesses, he added, but others as well.

He thanked all those who had contributed to the amendments for all the time they had put in and stressed that it would hold the Island in good stead.

Senate vice-president Norma Astwood said she supported the amendments which contributed to the Island's economic well-being.

She added they highlighted Government's efforts to get ahead of the competition in its effort to provide foreign companies with the best possible legislation it could implement.