Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 13 APRIL 2020

Wrongful Trading: Legal position In Jersey

Appleby
Appleby
Contributor
Appleby

Appleby

Appleby is a leading offshore law firm. The team of legal specialists advise global public and...

View firm profile
Explore more from Appleby

During these uncertain times, business resilience and continuity is at the forefront and directors of companies will be feeling mounting pressure to be dynamic and adapt to an unprecedented and rapidly changing situation.

JerseyCorporate/Commercial Law
James Gaudin
James Gaudin
Mark Brady
Mark Brady
Gemma Whale
Gemma Whale
Author LinkedIn connections

During these uncertain times, business resilience and continuity is at the forefront and directors of companies will be feeling mounting pressure to be dynamic and adapt to an unprecedented and rapidly changing situation. Directors, whilst seeking to minimise the impact to the business, should also be mindful of their own personal exposure whilst continuing to trade through the COVID-19 pandemic.

The UK Business Secretary recently announced a temporary suspension of wrongful trading rules, meaning that company directors would not be personally liable for their decisions during the COVID-19 pandemic. Whilst plans are in train to adopt equivalent measures in Jersey, the legal position in Jersey remains that a director has a duty not to allow the company to trade if they know (or is reckless as to whether) the company will not avoid insolvency.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Shareholder Disputes In The Jersey Courts

Jersey's position as a leading jurisdiction for cross-border corporate structures means shareholder disputes are increasingly litigated in its courts. With the island set to see significant growth in special purpose vehicle usage, understanding the remedies available under Jersey law—from unfair prejudice actions to derivative claims—and how recent developments like the abolition of the shareholder rule are reshaping the litigation landscape has never been more critical for investors and corpora
JerseyCorporate/Commercial Law
Baker & Partners LLP
Baker & Partners LLP
Article

Amendments To Companies (Jersey) Law 1991

The Companies (Jersey) Law 1991 has undergone significant amendments to strengthen Jersey's position as a leading international financial centre. These changes introduce enhanced flexibility in share capital management, streamlined corporate governance procedures, and modernised insolvency frameworks, all designed to provide greater clarity and efficiency for companies, investors and advisers operating in this jurisdiction.
JerseyCorporate/Commercial Law
Walkers
Walkers
Article

Starting Point Employment Law Guide: Starting A Business In Jersey

Jersey offers a straightforward path for establishing and operating a business, with flexible company structures, favorable tax rates, and clear regulatory frameworks. This comprehensive guide examines the essential requirements for business formation, employment regulations, licensing procedures, and property considerations that entrepreneurs and companies must navigate when entering the Jersey market.
JerseyCorporate/Commercial Law
Carey Olsen
Carey Olsen
Article

BMA Sets Out Phased Path To A Bermuda Insurance Resolution Regime

The Bermuda Monetary Authority has published a consultation paper outlining the first phase of a resolution regime for the commercial insurance sector, designed to align with international standards. The framework establishes the BMA as the Resolution Authority with five core objectives and defines which insurers will fall within scope. This phased approach raises important questions about governance, recovery planning, and the practical implications for domestic insurers and Internationally Active Insuranc
BermudaInsurance
Appleby
Appleby
Article

The Long Game: How Bermuda Became The World’s Life Reinsurance Capital

Bermuda has emerged as the dominant global hub for life and annuity reinsurance, now holding over $900 billion in US life and annuity liabilities and accounting for 84% of all US reserves ceded offshore. This analysis examines how the island's sophisticated regulatory framework, purpose-built infrastructure, and commercially engaged regulator have created a structural advantage that extends beyond its traditional catastrophe reinsurance roots into long-dated life business from the US, UK, and Asia.
BermudaInsurance
Appleby
Appleby