In a judgment given on 5 November 2015, the Final Appeal Court in Hong Kong held that s30A(10)(a) of the Bankruptcy Ordinance, which prevents the period of bankruptcy running from the date the Bankruptcy Order if the bankrupt is outside of Hong Kong, is unconstitutional. The Court found that the provision, which provides that upon returning to Hong Kong the Bankrupt must inform his Trustee and the period of bankruptcy runs from that date, is a disproportionate infringement on an individual's right to travel.

This article was first published by RECOVERY News and the full article can be found online here. 

In our June seminars we discussed the Pre-Pack Pool and the proposed changes to SIP 16. The revision was recommended by Teresa Graham as part of her independent review into pre-packs in June 2014, and the new SIP 16 was introduced on 2 November 2015 to coincide with the launch of the Pre-Pack Pool.

Key provisions of the revised SIP 16, which remains virtually unchanged from the draft issued in January this year, include:

The draft Banking Business (Amendment No. 8) (Jersey) Law 201- has been adopted by the States of Jersey and is awaiting the approval of the Privy Council. The draft Law will amend the Banking Business (Jersey) Law 1991 to provide for offences and impose duties under the Depositors Compensation Scheme.

Introduction

In finance transactions, security over Guernsey situs assets is usually taken by way of security agreement under the Security Interests (Guernsey) Law, 1993, as amended (the "Law").

The States of Guernsey has announced the recommendations from the consultation carried out on proposed changes to the Companies (Guernsey) Law 2008. This coincides with a judgment from the Royal Court highlighting the timely nature of proposed changes.

The 2008 Law was the result of a wholesale revision and consolidation of the corporate legal framework. Whilst its focus was on corporate law it also encompassed the insolvency regime in Guernsey. The consultation exercise was to determine what, if any, changes may be required now that the 2008 Law had been in place for some time.

This Briefing addresses the usual manner in which solvent voluntary liquidations proceed. The discussion is subject to the particular provisions of the Memorandum and Articles of Association of any company seeking a voluntary liquidation.

Where a company is not a regulated entity, has no liabilities and is able to pay its debts as they come due, a voluntary winding up and dissolution may be commenced by a resolution of directors.

Where it is proposed to appoint a voluntary liquidator, the directors of the company shall:

Introduction

With the continuing development of sophisticated cross-border financial transactions, certain contractual practices have evolved and, with the passage of time, become recognised as standard in the relevant marketplace. Financial centres such as Jersey monitor such developments with a view to implementing policy and/or legislation as may be required or desirable to maintain and enhance the reputation of Jersey as a jurisdiction of choice for such cross-border transactions.  

Introduction

Background

The concept of cell companies was first introduced to Jersey in February 2006. In addition to the widely recognised structure of a protected cell company, Jersey also introduced a completely new concept - the incorporated cell company.  

The key issue which differentiates both types of cell company from traditional (non-cellular) companies is that they provide a flexible corporate vehicle within which assets and liabilities can be ring-fenced, or segregated, so as only to be available to the creditors and shareholders of each particular cell.