In February 2016 we reported on proposed changes to Guernsey’s Corporate Insolvency Laws.

By way of update, the Committee for Economic Development has now submitted a policy letter to be considered by the States of Deliberation with respect to proposed amendments to Guernsey’s Companies’ Law to facilitate changes to the corporate insolvency regime.

The aim of the proposed changes is to modernise the Island’s corporate insolvency law and make clear the possible outcomes in a liquidation or administration procedure. This in turn will make the financial services industry in Guernsey more competitive thereby facilitating the flow of investment into the economy. Key changes include:

Administrators will be empowered to make distributions to creditors where these are in accordance with the objectives of the administration;

To introduce objectives of a winding up, including the duties of office holders and how those should be fulfilled;

There will be a requirement for liquidators to be independent in an insolvent voluntary winding up;

To provide for rules for the establishment of claims in a winding up;

To allow a liquidator to disclaim onerous assets and unprofitable contracts in certain circumstances;

To authorise the establishment of a statutory scheme for unclaimed dividends;

To require administrators and liquidators to report findings or suspicions of misconduct on the part of directors or officers of a company; and

To introduce a statutory power for the Royal Court to wind up insolvent foreign companies.

The States will now consider the policy letter and decide whether to direct the preparation of such legislation as may be necessary to give effect to the proposed changes. This is a significant and welcome step in the development of Guernsey’s insolvency offering.

Type

Insight

Locations

Guernsey

Share
Twitter LinkedIn Email Save as PDF
More Publications
30 Jul 2021 |

Fighting international fraud

First published in New Law Journal, July 2021. Appleby partners Anthony William and Jared Dann an...

Contributors: Jared Dann, Claire Corkish
20 May 2021 |

The Gender Pay Gap Debate – a response to comments on social media

As a lawyer the majority of articles we write are about a particular case or a legal issue – which...

4 May 2021 |

New Private Investment Funds in Guernsey

In December 2020, the Guernsey Financial Services Commission (Commission) published a consultation p...

Contributors: Oratile Jonas
16 Mar 2021 |

Guernsey Structures - The Cannabis Investment Conundrum

Jurisdictions around the world have adopted different positions in relation to the legality of the c...

12 Mar 2021 |

Material adverse change clauses in light of the Covid-19 pandemic

Experts from each of our key global offices provide jurisdiction specific advice and answer question...

8 Mar 2021 |

Appleby Celebrates International Women’s Day

International Women’s Day is celebrated annually in support of gender equality and equal participa...

23 Feb 2021 |

Fit and Proper in the Channel Islands – A Regulatory Enforcement Update

It is sometimes easy to forget with all that has happened over the last 12 months that there was a w...

27 Jan 2021 |

Levies, registration and all that jazz

Regulatory markets evolve at various speeds and the data protection regime is one example of a marke...

6 Jan 2021 |

Executors navigating the “perfect (company) storm”

Corporate governance has become one of the most hotly debated topics in recent years. Whether it be ...

Contributors: Paula Fry