Vol 17 (2020) - Issue 2

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2020 Heralds New Insolvency Law Changes for Guernsey

Synopsis

On 15 January 2020 the States of Guernsey passed the Companies (Guernsey) Law, 2008 (Insolvency) (Amendment) Ordinance, 2020, making Guernsey an even more desirable forum for insolvency proceedings. The new legislation is set to modernise Guernsey insolvency law, bringing the jurisdiction into line with not only the UK but other offshore jurisdictions such as the British Virgin Islands and the Cayman Islands. These changes will affect all new liquidations and administrations and will come into force when Regulations to that effect are made by the Committee for Economic Development.
Having had the opportunity to advise on the new law through ARIES (the pan-Channel Islands industry body) and via the insolvency rules committee I believe that the necessary legislative tools are now in place to ensure that liquidators and administrators can quickly and efficiently gather in the assets of insolvent companies and return them to the creditors. Some of the more important new tools are set out below.