Isle of Man introduces treasury share regulations

Publicly traded Isle of Man companies can now hold a maximum of 10 percent of their own shares in treasury, under new regulations which came into effect on 1 May 2010.

Instead of having to cancel shares on repurchase, a company can now repurchase and hold shares as treasury shares, thus reducing the costs of capital maintenance.

“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,” commented Allan Bell MHK, Minister for Economic Development.

“The change will help to make publicly traded companies on the Island more competitive which we welcome.”

The Isle of Man has a reputation as a premier offshore financial centre and these changes indicate that the Island continues to successfully compete in the sector.