Carey Olsen restructuring and insolvency partner David Jones has been appointed as a member of Guernsey's first ever Insolvency Rules Committee (IRC).
David's appointment is at the invitation of the Committee for Economic Development in anticipation of the Companies (Guernsey) Law, 2008 (Insolvency) (Amendment) Ordinance, 2020 (the "Ordinance") coming into force. The creation of the IRC in advance of the enactment of the Ordinance will allow the Committee for Economic Development to formally consult the IRC pursuant to section 426B of the Ordinance, so that the Ordinance and the Company Insolvency Rules may come into force at the same time.
The IRC has two primary roles. The first requires the committee to draft the inaugural set of Company Insolvency Rules to support the incoming legislation. The second is to review how the legislation is working and to amend or draft new rules as they are needed to ensure that Guernsey's insolvency framework is as practical and effective as it can be.
Commenting on his appointment, David said: "It is an honour to be appointed to the first ever Insolvency Rules Committee in Guernsey and to help guide the new legislation's launch. The existing regime, supported by Guernsey's adaptable and practical judicial system, offers effective tools for dealing with distressed entities. The Ordinance and rules will enhance that regime at a time when it will play an increasingly important role in dealing with the fallout and recovery from COVID-19. The improvements should be welcomed by businesses, their stakeholders and practitioners alike, and I'm excited to be part of the team that will establish the first set of Company Insolvency Rules."
The Ordinance itself was approved by the States of Guernsey earlier this year and is expected to come into force shortly. Following its approval by the States, David outlined and explained the key changes in the Ordinance in a summary briefing.
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.