Updated guide coming soon
On 8 February 2022, the States Assembly of Jersey approved amendments to the Companies (Jersey) Law 1991 (the Companies Law) which introduce a mechanism that will enable a creditor of an insolvent company to apply to the Royal Court of Jersey (the Jersey Court) for that company to be placed into a creditors' winding up (CWU) and for a liquidator to be appointed (the Amendments). The Amendments came into force on 1 March 2022.
Previously, désastre proceedings were the only creditor-driven insolvency process for a Jersey company, where the Viscount (the head of the executive arm of the courts of Jersey) is appointed to wind up the company and distribute its assets.
The Amendments enhance and protect the interests of creditors and are based upon principles and practices widely recognised in other insolvency regimes.
We are currently updating this guide to reflect these changes. In the meantime, click here for a summary of the developments.