Reforms to Guernsey's insolvency laws that will provide for a more effective corporate insolvency regime should be welcomed by those in industry, according to Carey Olsen Partner David Jones (pictured).
Approval by the States of Guernsey of the Companies (Guernsey) Law, 2008, (Insolvency) (Amendment) Ordinance, 2020 brings the introduction of the updated law one step closer – including, for the first time in Guernsey, formal insolvency rules to offer guidance on procedural matters surrounding both the new and existing law.
Advocate Jones specialises in restructuring and insolvency, and has been involved in many significant insolvencies on the island over the past 10 years. He sat on the industry working party responsible for reforming the law and has been nominated to sit on the first Insolvency Rules Committee that will draft the practical framework around which the new law will operate.
"The legislative amendments approved by the States of Guernsey are a welcome and sensible step towards bolstering what is already an effective corporate insolvency regime in Guernsey," he said. "The changes will clarify procedure, fill some of the gaps in the current provisions and provide further comfort to all stakeholders as to the ability of the jurisdiction to handle complex insolvencies.
"The introduction of insolvency rules will augment the new and existing legislation, but also allow Guernsey to continually seek to update its procedures to deal with the practical issues arising in modern insolvency assignments."
In addition to the introduction of insolvency rules, other changes to Guernsey's insolvency laws will include increased protection for creditors in insolvent liquidations, an improved and quicker mechanism to end an administration, increased investigatory powers for office holders and the introduction in Guernsey of the disclaimer of onerous assets.
• For further details on the changes, click here