Jersey Touts New Mergers Legislation

by Amanda Banks, Tax-News.com, London

01 March 2011

A recent development of the Jersey Companies Law will create further opportunities for foreign-owned companies to use Jersey vehicles to effectively access the international capital markets, Jersey Finance has said.

Enhancement's to Jersey's merger provisions, which entered into force on February 23, are expected to add an attractive feature to Jersey's regime for international investors looking at opportunities to invest in Western markets. The regulations enable Jersey companies to merge with both foreign companies and other foreign bodies incorporated outside of Jersey; and also allow Jersey companies to merge, in any combination, with other Jersey companies or bodies incorporated in Jersey.

Geoff Cook, Chief Executive of Jersey Finance welcomed the changes and said that they would be of particular interest in some of the emerging markets such as India. He commented:

“We know from our visits to India that there is huge interest in bringing Indian capital into Europe, but also a need to recover and repatriate profits made from that capital investment back to India. These provisions will provide institutional investors in India and elsewhere with more options when they establish entities in Jersey to meet investment objectives. Institutional and intermediary clients in Hong Kong and mainland China, for instance, may wish to take advantage of these new provisions when considering the use of Jersey holding companies for listing on exchanges.”

“Furthermore our representative office in Mumbai, opening on March 15, and our Greater China representative office ensure we effectively promote the benefits of this exciting development of the Jersey company offering to these key markets.”

Jersey Finance warned that any proposed merger involving a body other than a Jersey company will require the consent of the Jersey Financial Services Commission, which must consider the interests of members, creditors and the public and the reputation of Jersey.

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