Just & Equitable Winding Up: A Flexible Tool

The jurisdiction to wind up a company under the provisions of article 155 of the Companies (Jersey) Law 1991 is extremely useful precisely because it is so flexible. It allows a company to be wound up in an orderly fashion, by nominated liquidators, without the stigma of the company passing through a bankruptcy process such as désastre. This is particularly important for group or subsidiary companies, or companies with a name associated with a parent company.

In the wake of recent financial and personal turbulence following the pandemic, where investment priorities change, or where financial irregularities have been exposed or financial pressures mean that directors aren't able to commit time to projects as anticipated, it is not surprising that there have been a recent number of applications made under this jurisdiction. We anticipate that there will be more to come.