A new set of regulatory amendments to Jersey’s company law will add greater flexibility to the jurisdiction’s corporate environment and enhance its appeal for corporate restructuring and M&A activity, according to the CEO of Jersey Finance, Geoff Cook (pictured).
The new regulations, Companies (Demerger) (Jersey) Regulations 2018, approved by Jersey’s government last week, aim to provide a clearer and more flexible framework for demerging companies.
In particular, the regulations will enable the undertaking, property, rights and liabilities of a Jersey company to be divided among two or more companies, and to transfer their assets and liabilities.
Geoff Cook commented: “Jersey has always sought to achieve an attractive platform for supporting cross-border corporate activity, and firms here have continued to report strong pipelines of work in 2018.
"We’ve seen a steady rate of company registrations on our register, for example, while there are around 85 Jersey companies listed on exchanges around the world with a combined market capitalisation of £260bn.
“The new regulations are designed to build on that to create an environment that makes it easier and more cost-effective for companies wanting to demerge.
"Against a low interest rate backdrop, globally dynamic companies are increasingly looking to pursue growth strategies through M&A activity. We anticipate this will drive a future need for good-quality centres that can provide clear, straightforward and flexible regimes for corporate restructuring.”