Insolvency Practitioner Guidelines Introduced In Guernsey

In March 2017, the States of Guernsey approved the reform of Guernsey's insolvency laws, which afford greater protection to creditors and investors. The necessary legislative amendments are currently being drafted although the date of issue is yet to be determined.

Key changes proposed include:

• Distinguishing between solvent and insolvent voluntary liquidations;
• Liquidators to call at least one meeting of the creditors within a set period of time following their appointment;
• Power for administrators to make distributions to all types of creditors where the distributions are in keeping with the objectives of the administration;
• A statutory duty to report director misconduct / bring disqualification proceedings against delinquent directors;