mourant.com 2021934/84097043/2 GUIDE Insolvency procedures for Guernsey companies Last reviewed: February 2023 Contents Introduction 2 Modern corporate insolvency proceedings 2 Administration 2 Liquidation 3 Voluntary liquidation 3 Compulsory liquidation 4 Scheme of arrangement 5 Statutory process 5 Three-stage mechanism 5 Approval and challenges 5 Receivership 5 The traditional procedures 6 Désastre 6 Saisie 6 Out-of-court restructurings and consensual workouts 7 Conclusion 7 Contacts 7 2 mourant.com 2021934/84097043/2 Introduction Guernsey law provides a number of ways to ensure an orderl

The Society of Trust and Estate Practitioners (STEP) held its annual International Wealth Structuring Forum in the Cayman Islands on 19 and 20 January 2023 at the Ritz-Carlton, Grand Cayman. The forum was an opportunity for leading trust and wealth management professionals to gather and discuss the latest local and international developments impacting the industry. Hector Robinson KC and James Anson-Holland of Mourant attended the forum and have summarised the top three takeaways from the panel discussions.

The mercurial modern assets

Introduction The BVI Business Companies Act (as amended) (the Companies Act) provides two ways to dissolve a solvent company incorporated in the BVI (the Company), namely: 1) to complete a voluntary liquidation process, with dissolution occurring immediately thereafter; or 2) to allow the Company to be administratively struck off the Register of Companies (the Register) by the BVI Registrar of Corporate Affairs (the Registrar) and simultaneously dissolved on the date the Registrar publishes a notice of the striking off in the Government of the Virgin Islands Official Gazette (the Gazette).

mourant.com 2021934/73089611/3 GUIDE Protected Cell Companies Last reviewed: January 2023 Contents Introduction 2 What is a PCC and what is it used for? 2 Advantages and disadvantages of a PCC 2 Formation of a PCC 2 What are cellular assets? 3 What are core assets?

Broadly, the end of life options for a solvent Cayman Islands company are either a voluntary liquidation or a strike-off. The appropriateness of either method will depend on the business history of the company and its current financial position. The company should ideally have no assets or liabilities before the commencement of either option.

Preliminary steps

Before commencing the dissolution process, it may be necessary to take some preliminary steps, such as ensuring that:

This Regulatory Update provides a snapshot of the key legal developments in the BVI and the Cayman Islands over the last quarter – including amendments to BVI business company fees, the introduction of the BVI Virtual Asset Service Providers Act, and an update on the list of director names which is now publicly available in the BVI. It also contains a reminder of the January 2023 filing deadlines in the Cayman Islands, amendments to the Cayman LLC legislation and details of the highest possible rating given to the Cayman Islands by OECD for effectiveness of AEOI regime.

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.

The Grand Court of the Cayman Islands has issued its first judgment appointing Restructuring Officers under the new section 91B of the Cayman Islands Companies Act, which came into force on 31 August 2022.

Introduction

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.