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Proposed Companies (Amendment No 9) (Jersey) Law 200-
This article was written by Paul Wilson.
More Changes
Hot on the heels of Companies (Amendment No.8) (Jersey) Law 2005 that came into force on 1 February 2006, the States released a briefing paper containing further proposed changes to the Companies (Jersey) Law 1991. The proposals, some of which are outlined below, are generally to be welcomed.
Public Register of Directors
It is proposed that all Jersey companies will be required to file details of their directors in the annual return form submitted to the Jersey Companies Registry rather than just public companies as is currently the case. It is also proposed that Jersey companies will need to keep the Jersey Companies Registry informed of changes to their board within 14 days of such changes occurring. With certain exceptions, the identity and details of board members of Jersey companies will become a matter of public record.
Corporate Directors
Jersey companies will at long last be permitted to have corporate directors if the proposals are approved. Corporate directors will, however, need to be entities that are registered in Jersey to carry on trust company business pursuant to the Financial Services (Jersey) Law 1998.
Registered Office Address
Whilst every Jersey company is currently required to have a registered office address in the Island, it is proposed that changes to the law are implemented to help prevent companies from being able to stipulate any address as its registered office irrespective of whether the owner of that address knows or has agreed to provide such a service. In this respect, the proposals provide that the Jersey Companies Registry will only correspond with the registered office of any company and if, in turn, the owner of that address disputes that it is the correct registered office, the Jersey Companies Registry will have the power to strike the company off the register.
Removal of Financial Assistance Restrictions
Happily it is proposed that the current provisions preventing Jersey companies from giving financial assistance with regard to the purchase of their own shares, unless they go through a rather convoluted “whitewash” procedure, be abolished. This proposal will certainly reduce the regulatory burden for Jersey companies, although companies will still need to ensure when providing financial assistance that the proposed actions are in the best interests of the company.
When?
It is anticipated that Amendment No.9 will become law in the second half of 2007, but it is too early at present to categorically state that all of the above proposals will make the statute book.
I will keep you informed!