BF&M shareholders to vote on Argus merger

BF&M shareholders will vote on December 23 on whether to agree to increase the company's share capital and to amend its bye-laws as preconditions for its merger with its domestic rivals Argus Group. 

Argus shareholders will meet on the same day to approve the amalgamation which would create the dominant domestic Bermuda insurance company. 

The shareholders are being asked to approve an increase in the company's share capital from $10 million to $20 million through the creation of 10 million new shares, according to a notice signed by chairman Anthony Joaquin.

The company will also be asked to agree to new provisions in the bye-laws including a limitation on any shareholder exercising 10% of the total voting power of the company without the agreement of 70% of the company's board of directors and a quorum requirement that a shareholder meeting must have at least 10 people present representing more than 15% of the voting shares of the company. Currently a quorum consists of at least two people representing 25% of the voting shares. 

If both sets of shareholders approve the merger, it will clear a major hurdle. While the Government has raised concerns about the creation of a dominant health insurer, and has aired proposals for government power to regulate near monopolies and monopolies, no such mechanism exists outside of utilities regulated by the Regulatory Authority.

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