Jersey To Simplify Rules For Corporate Demergers
by Jason Gorringe, Lowtax.net, London
26 July, 2018
Jersey's Government recently approved the Companies (Demerger) (Jersey) Regulations 2018, intended to provide a better, clearer, and more flexible framework for company demergers.
The new regulations enable the undertaking, property, rights, and liabilities of a Jersey company to be divided amongst two or more companies, as well as allowing the transfer of their assets and liabilities.
Geoff Cook, CEO of Jersey Finance, the island's financial services promotion agency, said the new regulations are designed to create an environment that makes it easier and more cost-effective for companies wanting to demerge.
He also noted that the low-interest rate environment means globally dynamic companies are increasingly looking to pursue growth strategies through mergers and acquisitions, and that this will drive a future need for good quality international financial centers that can provide clear, straightforward, and flexible regimes for corporate restructuring.
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