After a lengthy consultation period, Jersey's legislature
recently passed the Companies (Amendment No.8) (Jersey) Regulations
2022 (Amendment No.8) amending the Companies
(Jersey) Law 1991 (the Companies Law). This
amendment has introduced a new insolvency remedy for creditors of
Jersey companies with effect from 1 March 2022. This is an
important development for the insolvency legislation of Jersey,
bolstering the jurisdiction's position as a leading
international finance centre.
Jersey insolvency procedures
The main procedures for winding up an insolvent Jersey company
are:
- Désastre: an insolvent Jersey company
may be liquidated by the Royal Court following a désastre
application. The application may be made by either: (i) a creditor
(owed a liquidated sum of not less than £3,000), (ii) the
company itself, or (iii) in some circumstances, the Jersey
Financial Services Commission. If the Royal Court declares the
property of the Company en désastre, all the
