Bermuda is the oldest and largest self-governing British
dependent territory, having had its own elected Parliament
since 1622. The Westminster system applies, complete
with multi-party politics. Legislative authority is
vested in the Governor, Senate (or Upper House), which
consists of 11 members, and the House of Assembly (or
Lower House), which consists of 36 members.
The 1968 Constitution of Bermuda is a vital instrument,
which has served to entrench fundamental rights and
freedoms. To some extent, it proscribes legislative
authority of the Government.
As are many of the other international financial centres,
Bermuda is a common law jurisdiction. The law administered
by the Courts is the common law of England and Wales,
the law of equity together with statutes of the Bermuda
legislature and common law of Bermuda.
Bermuda has a well-established judiciary, with the
Supreme Court of Bermuda being the court of first instance,
followed by the right in certain circumstances to appeal
to the Court of Appeal in Bermuda and with an ultimate
right of appeal to the Privy Council in the United
Kingdom.
The Bermuda Bar Association was established in 1974
as the governing body of the legal profession. Acting
through an elected Bar Council, the Bar Association
is responsible for matters pertaining to the admission
of members to practice law in the jurisdiction. It
also oversees the regulation of members pursuant to
the rules of the Barristers' code of conduct; the maintenance
of honour and independence of the bar; and the promotion
of law reform.
To aid the Bermuda legal fraternity in the provision
of legal solutions for substantial international clients
with complex business needs, Bermuda has developed
effective, well-drafted legislation.
As an international financial centre, Bermuda continues
to develop and adapt. By way of example, through the
medium of the Legislative
Change Committee of the Bermuda International Business
Association, Bermuda constantly seeks to enhance its
commercial legal framework. To this end, the principal
corporate statute (namely, Companies Act 1981) has
been amended on average once a year for the past eight
years to accommodate particular concerns, remove impracticalities,
make refinements and generally enhance the attractiveness
of the jurisdiction without sacrificing its integrity.
Many of the principal statutes in Bermuda can trace
their roots to English statutes. For instance, the
company law of Bermuda is historically derived, for
the most part, from the laws of England (with certain
reliance placed upon the laws of Ontario, Canada and,
to some extent, upon the Companies Ordinance of Hong
Kong). Other provisions of the corporate statute are
original Bermuda provisions endeavouring to cater to
the specific circumstances of international business
and typically include concepts not recognised in other
jurisdictions.
Bermuda is unique in being able to offer clients the
ability to petition Parliament for the enactment of
special legislation. Such private legislation is frequently
instrumental in effecting novel structures that would
otherwise not be permitted at law. Thus, recent
life insurance and annuity products have been structured
by "designer" companies created for the purpose,
with a Private Act obtained to give unique characteristics
to the policies as well as the corporate powers of
the new company.
