In respect of reform of Guernsey’s corporate insolvency laws, the Department has decided against introducing a single insolvency law and instead to amend the Companies (Guernsey) Law, 2008 to facilitate the following key changes:
The introduction of Insolvency Rules;
A requirement that liquidators be independent in an insolvent voluntary winding up;
Set out the general objectives of liquidation;
Allow for greater information gathering powers by insolvency officeholders, including the ability to examine current and former directors;
Introducing a provision to claw back transactions at undervalue and disclaim onerous assets;
The introduction of a statutory duty on administrators and liquidators to report to the relevant authorities misconduct on the part of directors and officers of a company;
The introduction of a process to establish and rank claims in a liquidation; and
The express power for administrators to make distributions to all creditors where these are in accordance with the objects of the administration.
