Offshore: Brazil connections
Brazil-based businesses seeking sources of international capital are establishing Bermuda, British Virgin Islands and Cayman Islands vehicles, with Bermuda emerging as the jurisdiction of choice for domiciling holding companies. Bermuda holding companies either have publicly-listed securities or serve as vehicles for private equity investment. Organisations such as the Bovespa (the Sao Paolo-based stock exchange) and the Securities and Exchange Commission of Brazil (CVM) deal with Bermuda companies regularly.A few aspects of Bermuda law, in particular the accommodation that has been made for foreign law and practice, warrant specific mention. Under Bermuda law, a Bermuda company is not permitted to issue shares to non-residents of Bermuda, and its shares cannot be transferred to non-residents without the prior approval of the Bermuda Monetary Authority. However, this restriction is eliminated by the Bermuda Monetary Authority's policy of issuing a 'blanket' permission for the issuance and free transferability of all shares of a publicly-listed company - as long as the company maintains its listing on an appointed stock exchange, such as the Bovespa.
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