Guernsey launches consultation on company law

Written by Ray Clancy

Tuesday, 13 April 2010 10:00

The international finance industry is being asked to give views on company law in Guernsey as part of a review aimed at making sure the island’s law is cutting edge, flexible and practical.

Two years after its introduction, the Companies (Guernsey) Law 2008 is to come under review. The law provides the legal framework for the establishment and operation of companies in the island.

When it was introduced, the Law represented a fundamental overhaul of Guernsey’s existing legislation, involving the consolidation amendment and updating of existing provisions.

Guernsey’s Commerce and Employment Department said in that the 2008 Law has been well-received and has proved a successful piece of legislation for Guernsey, providing a competitive and leading framework from which to carry out business locally, nationally and on an international platform.

But a consultation, which is open until May 31, is underway to make sure Guernsey maintains its reputation as a highly regarded and competitive business centre. The Commerce and Employment department has conducted a post implementation review in order to identify any amendments that may be necessary. These will address practical issues and take account of developments in company law elsewhere.

‘The 2008 law represented the most significant change to Guernsey company law since protected cell companies were introduced 13 years ago. But Guernsey cannot be complacent and must ensure that its law remains cutting edge, flexible and practical. I would encourage all those in industry to provide their feedback on the law and the proposed amendments by responding to the consultation,’ said McNulty Bauer, Minister for Commerce and Employment.

He added that in reviewing the Companies (Guernsey) Law (2008), the Department has taken note of feedback received from a number of individuals and organisations including local Advocates, local industry and the Guernsey Registry, as well as taking into account broader policy considerations.

Meanwhile one of the island’s major business organisations says that a Conservative win at next month’s general election will be the best outcome for Guernsey. Chamber of Commerce director Barry Cash said a change in government would be good for the island.

‘I believe that Guernsey would be better served by a Conservative government rather than a Labour one purely because they do not believe in the long screwdriver. The Conservatives allow business to develop and without, we hope, too much interference from Brussels,’ he explained.

Cash said the worst result for Guernsey would be a hung parliament. ‘We sincerely hope that does not happen. We would not be able to get anything out of them and they would not be able to make decisions,’ he added.