1 Developments in Channel Islands in response to COVID-19
1.1 Economic substance
There has been concern, in light of the restrictions on travel
as well as the need for individuals to self-isolate as a result of
the COVID-19 pandemic, that it will not be possible or practical
for some companies to comply with the directed and managed test for
the purposes of economic substance rules for as long as the
situation persists.
The "directed and managed" test provides, among other
things, that meetings of the board of directors of companies within
the scope of the relevant Economic Substance Law must be held in
the relevant Island at adequate frequencies, that a quorum of the
board of directors must be physically present in Jersey or
Guernsey, as applicable, at those meetings and, where a meeting is
called to consider a strategic matter, or a matter relating to the
companies' core income generating activities, a majority of
directors must be physically present in Jersey
