Formation of Barita Financial Group Aligns Organisation With Amended Banking Services Act

The shareholders of the Barita-Cornerstone Group have voted in favor of a reorganisation aimed at bringing the entity into compliance with amendments to the Banking Services Act.

This decision was made during court-sanctioned meetings held on January 20, 2025, for Cornerstone United Holdings Jamaica Limited, CUHJ and Barita Investments Limited, BIL.

Chevon Campbell tells us more.

The Barita-Cornerstone Group’s reorganisation will be implemented through a composite Scheme of Arrangement, as outlined under the Companies Act of 2004.

Preliminary results shared on the Jamaica Stock Exchange’s website indicate overwhelming support for the schemes.

At Cornerstone United Holdings Jamaica Limited, CUHJ, over 95 per cent of shareholders present in person or by proxy voted in favor of the reorganisation.

At Barita Investments Limited, more than 80 per cent of shareholders present also approved the initiative.

Chairman of Barita and CUHJ, Mark Myers, expressed satisfaction with the outcome, emphasising the strategic importance of the move.

Mr. Myers noted that the reorganisation will position the group to meet the requirements of the Banking Services Act of 2014.

This mandates that financial services groups operate under a single financial holding company licensed by the Bank of Jamaica.

The reorganisation will result in Barita Investments Limited, its wholly owned subsidiary Barita Unit Trusts Management Company Limited, and Cornerstone Trust and Merchant Bank Limited operating under a new financial holding company.

This is named the Barita Financial Group Limited, BFGL.

While BFGL will become the majority owner of Barita, the overall ownership structure will remain unchanged.