Cayman National Corp. Ltd. said its shareholders approved a proposal to delete an article from the company's bylaws that would facilitate a takeover offer from Republic Bank Trinidad & Tobago (Barbados) Ltd.

The article prevents any entity from acquiring legal or beneficial ownership of or voting control over more than 10% of Cayman National's total issued shares. However, the removal of that article is still subject to approval from the Cayman Islands government.

Cayman National recently reached an implementation agreement and side letter agreement regarding a revised offer from Republic Bank Barbados, a unit of Republic Financial Holdings Ltd., to acquire up to 74.99% of Cayman National's issued shares at US$6.25 each.

The deal's completion is subject to certain conditions, including a 51% minimum acceptance level in an all-cash tender offer due to expire on Oct. 22. The deletion of the article 7 is a separate condition to the offer.

Cayman National's board has recommended that shareholders accept the Republic Bank offer.