Corporate managers and administrators are poised to welcome a number of imminent changes to Guernsey's company legislation designed to increase the Island's competitiveness as an international finance centre.
The changes are due to come into effect on 1 January by ordinances enacted by the Island's parliament under The Companies (Enabling Provisions) (Guernsey) Law 1996 (which has now obtained Royal Assent).
A key change involves the introduction of Protected Cell Companies which are expected to be of particular interest to the managers of umbrella funds (i.e. those comprising several classes of investment fund) and to the promoters and managers of 'rent-a-captive' insurance companies and deferred variable annuity captives. The important feature of PCCs is that their assets will be legally segregated into two or more classes (cells) each of which will stand alone as far as creditors are concerned, thus avoiding any danger of contamination by the insolvency of any one class or cell.
Other changes will allow:
- formation of Guernsey companies limited by guarantee with or without any share capital
- cross-border migration of overseas incorporated companies to Guernsey and vice versa
- amalgamations between two or more companies, including Guernsey companies, to form a single corporate entity
- the provision of merger and group reconstruction relief
- the issue of no par value shares
- streamlining of annual return administration.
For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or fax: +44 (0) 1481 712 010 or e-mail: email@example.com
Visit the Guernsey Financial Services Commission Web Site at Click Contact Link
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.