Jersey To Enhance Companies Law
by Jason Gorringe, Lowtax.net, London
16 June, 2014
Jersey is introducing amendments to its Companies Law aimed at minimizing bureaucracy and increasing flexibility. The changes, which follow industry consultation, are expected to be enacted in Autumn.
The measures to be introduced are some of the most wide-ranging in recent years. They include an 'out of court' procedure to reduce a company's capital, increased flexibility surrounding shareholder resolutions, and the prospect of new regulations that will permit a company to 'demerge' into two or more surviving companies.
The new law also includes changes designed to make it easier to list Jersey companies on foreign exchanges, greater oversight of directors' actions, and, in a reversal of the existing position, private companies will no longer need to hold Annual General Meetings unless their articles specify otherwise.
The Draft Companies (Amendment No. 11) (Jersey) Law has been passed by the island's Parliament, the States of Jersey, and will enter into law once it obtains Privy Council approval.
The CEO of Jersey Finance, Geoff Cook, said: "Jersey is already well established as a leading European center for investment structures and the Jersey company is an attractive choice for institutional investors listing in London and on other international stock exchanges."
"These 20 or so amendments, which have been agreed following detailed consultation with industry and the regulator, serve to clarify important aspects of the existing law, expand the options and choices for investors and further enhance Jersey's corporate offering, ensuring that it continues to provide the fullest range of modern and flexible vehicles, both incorporated and unincorporated."
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