Death Of Cobo

Until recently, both the raising of capital (in certain cases) and borrowing by a Guernsey company were regulated by The Control of Borrowing (Bailiwick of Guernsey) Ordininace, 1959 (as amended), commonly known as "COBO".

With effect from 27 February 2013 COBO will be no more.

The legislation was originally introduced for the regulation of borrowing, raising of monies, promotion and financing of transactions throughout the British Isles after the end of WWII, at a time of chronic financial difficulty. COBO became law during a period when control of borrowing was essential for economic reasons. However following several amendments to the legislation, the application of COBO in recent times applied it to much more. It became the bane of most local and London lawyers' lives!