Transitional Provisions, Guernsey Companies Law

The States of Guernsey radically reformed Guernsey's companies law in 2008 with the repeal of the Companies (Guernsey) Law, 1994 (the "1994 Law") and the introduction of the Companies (Guernsey) Law, 2008 (the "2008 Law").

This reform involved a shift away from a "capital maintenance" model of company law to a more flexible and commercially sensible "solvency model" of company law.

Such a shift, while welcome and extremely useful for Guernsey companies, had profound implications for the structure and content of the memoranda and articles of companies incorporated under the terms of the 1994 Law.

THE TRANSITIONAL PROVISIONS

Given these profound implications, and the understanding that they would take time to "bed down", the States of Guernsey wanted to provide the users of Guernsey companies with some breathing space before such users might be required to update their memoranda and articles.