Update: Guernsey Corporate Law Changes May 2021

Guernsey has updated the Companies (Guernsey) Law, 2008 (the "Companies Law") with effect from 1 May 2021. This update introduces a number of practical changes which make the Companies Law even more flexible and user-friendly (the "Update"). We summarise below the main changes introduced by the Update.

Location of board meetings

The Update modifies the general rule that the location of a board meeting is the place where the chairman of the meeting is physically present, by allowing the memorandum, articles or a board resolution to adopt a different rule setting out where a board meeting is treated as occurring.

Companies that are considering adopting any changes that override the general rule should be mindful of Guernsey economic substance requirements and non-Guernsey tax issues, especially if changes could cause a board meeting to be treated as being held outside of Guernsey.