Jersey is in the process of implementing a series of legal and regulatory changes designed to make the Island a more attractive jurisdiction for incorporating companies, it has emerged.
These changes aim to bring further flexibility and a far wider range of options for
legal and finance professionals setting up companies in the Island. The measures
will be particularly advantageous for those establishing special purpose companies,
group holding companies or joint venture vehicles.
Some of the changes took effect in January and included the introduction of
treasury shares, the abolition of the financial assistance provision, increased
flexibility to the format of cell companies incorporated in Jersey, and a change
in the law so that a regulated financial services business can now act as a
corporate director of another Jersey company.
In the second quarter of the year, following Privy Council approval, further
law changes will come into force which simplify procedures when certain types
of companies wish to reduce capital or make distributions to shareholders. There
will also be a relaxation of the rules on share buybacks.
The later legal amendments will also include new provisions designed to make
Jersey a more attractive jurisdiction for public limited companies, including
the ability for public companies to use the suffix ‘plc’ as an alternative
to ‘limited’.
Robert Kirkby, Technical Director at Jersey Finance observed that:
“Taken together, these measures provide finance professionals with a
whole range of additional options when forming corporate structures, giving
them far greater flexibility. They will enhance the appeal of the jurisdiction
when companies are established in the Island, providing a boost to leading sectors
of our industry."
"For example, the ability to hold treasury shares will be particularly
beneficial for public companies, whilst the abolition of the financial assistance
provision will significantly simplify transactions involving the giving of financial
assistance by Jersey companies.”
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