Press Release - 7 July 2003
CONSULTATION STARTS ON NEW REGIME GOVERNING THE WINDING UP OF JERSEY COMPANIES
Proposals for new regulations for Jersey companies aimed at increasing creditor protection and providing further safeguards to the Island's reputation are being discussed between the local business community and the Jersey Financial Services Commission.
The new proposals are designed to ensure that Jersey continues to provide a high quality, flexible environment for commercial activity. Responses are required by 30 September and if the proposals are adopted, they are expected to take effect by the end of 2003.
The key changes, proposed via a consultative document issued by the Jersey Financial Services Commission, are:
The consultation paper also covers a number of technical issues in relation to the winding-up of Jersey companies. These include reconsideration of the circumstances where a Jersey company may enter into a summary (solvent) winding up, and where a previous shareholder can be required to contribute to the assets of an insolvent company when it is wound up.
In addition, the consultation paper, which was issued in close collaboration with the Viscount's Department at the Royal Court, sets out proposed changes to the regime governing désastres (bankruptcies), both corporate and individual.
Richard Pratt, Director General of the Jersey Financial Services Commission, said:
"The Commission believes that the proposals are of interest to all of those who transact with Jersey companies as well as the Island's finance industry, and would welcome responses from all sections of the community."
For further information please contact:
Tel: +44 (0) 1534 822040