Vol 16 (2019) - Issue 3

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Just and Equitable Winding Up in Jersey: A Flexible Friend?

Synopsis

The insolvency regime in Jersey is an interesting mix of English law and Norman customary law influences. Jersey has four principal methods of winding up a company:

1. Summary winding up;
2. Creditors winding up;
3. Just and equitable winding up; and
4. Désastre

Whilst there are limitations to the insolvency options available in Jersey, for example the absence of an administration process, the Royal Court has shown itself to be willing to take a pragmatic approach when dealing with corporate insolvencies to enable the best possible outcomes for creditors. The two areas in which the Royal Court has most frequently shown its willingness to assist creditors are (i) in relation to the recognition of foreign officeholders and (ii) the use of the just and equitable winding up regime. This article however focuses on the use of just and equitable winding up in Jersey and the flexible approach the Royal Court has adopted to this regime.