IOM Treasury Share Regulations Effective

by Jason Gorringe, Tax-News.com, London

11 May 2010

The Isle of Man has introduced regulations to permit publicly traded companies to purchase and hold a maximum of 10% of their own shares in treasury, making publicly traded Isle of Man companies more competitive.

The regulations, which came into effect on May 1, 2010, give a company the ability to reduce the costs of capital maintenance as it can repurchase and hold shares as treasury shares, instead of having to cancel the shares on repurchase.

The Isle of Man’s Minister for Economic Development, Allan Bell, commented: “These regulations illustrate the ways in which the Isle of Man government is developing its regulations to enable businesses to conduct their affairs in a more efficient and competitive manner. The change will help to make publicly traded companies on the island more competitive which we welcome.”

Anne Craine, the Manx Treasury Minister, added: “I am very pleased that we were able to move ahead with the introduction of these Regulations. It is a progressive development that should assist the industry by making the Isle of Man a more attractive place for investors to do business. Treasury together with the Department of Economic Development is keen to work with all areas of the finance sector to promote the island and its reputation and this is a good example of the success of our working partnership.”

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