Introduction
It seems like a week hasn't passed recently without some new global macro shock hitting our screens, resulting in the economic rollercoaster ride on which we find ourselves.
Introduction
This Guide explains the procedure for administration order proceedings in respect of Guernsey companies.
Administration orders
The purpose of administration orders
This Update provides an overview the recent changes to Guernsey's insolvency regime affecting voluntary liquidations.
Introduction
The Companies (Guernsey) Law, 2008 (Insolvency) (Amendment) Ordinance, 2020, which amends the Companies (Guernsey) Law, 2008 (the Companies Law) came into force on 1 January 2023. It is supported by the first set of Insolvency Rules (the Rules) which came into force on the same date.
This Update provides an overview of the key changes concerning voluntary liquidations.
Amendments to Guernsey's corporate insolvency legislation give liquidators more investigative powers and permit liquidators and administrators to set aside transactions at undervalue.
One of the most powerful investigative weapons in any liquidator's armoury is the ability to compel the production from third parties of information and documents regarding the affairs of the company. Until recently, the precise scope of the liquidator's ability to seek production of such information or documents in Guernsey has been uncertain, relying on ill-defined common law powers.
The Royal Court in Guernsey will soon be able to wind up foreign companies.
Recent changes to Guernsey's insolvency regime will mean that, for the first time, foreign companies can be compulsorily wound up in Guernsey.
Long-awaited amendments to Guernsey's corporate insolvency legislation will come into force on 1 January 2023.
Introduced by the Companies (Guernsey) Law, 2008 (Insolvency) (Amendment) Ordinance, 2020, the provisions are aimed at further improving and updating Guernsey's corporate insolvency regime. The amendments stem from a wide-ranging consultation finalised in 2017 and represent the most significant development of Guernsey's insolvency law since 2008.
The amendments introduce a number of key changes to the law:
Liquidation
Foreign insolvency proceedings (including those ordered by the UK courts) have no direct operation in Guernsey. Therefore foreign insolvency office holders looking to take steps in Guernsey, such a collecting in assets or compelling the production of information from third parties, will need to first be recognised under Guernsey law before steps can be taken in this jurisdiction.
Guernsey has not introduced legislation based on the UNCITRAL model law on cross-border insolvency. It is also not (and was not prior to Brexit) subject to the Recast Insolvency Regulations.
Introduction
This Guide explains the procedure for administration order proceedings in respect of Guernsey companies.
Administration orders
The purpose of administration orders
The provisions for Guernsey companies to be placed into administration are set out in Part XXI of the Companies (Guernsey) Law, 2008 (the Law).
Introduction
This Guide explains the procedure for liquidation proceedings in Guernsey, which are separated into two types: (i) voluntary liquidation and (ii) compulsory liquidation.
Liquidation proceedings
Voluntary liquidation
The provisions for the voluntarily winding up a company under Guernsey law are set out in Part XXII of the Companies (Guernsey) Law, 2008 (the Law).
Commencement