The Companies (Guernsey) Law, 2008 (Insolvency) (Amendment) Ordinance, 2020 has been approved and is expected to come in to force shortly. The new corporate insolvency regime is intended to modernise the current law.
Key developments include the introduction of a members’ voluntary winding up procedure for insolvent companies; a method to end an administration by dissolution, rather than liquidation; the power to disclaim; and the winding up of non-Guernsey companies. Liquidators and Administrators' investigatory powers have been expanded as well as their ability to pursue claims for the benefit of creditors.
There will be greater consultation with creditors in liquidations, greater independence requirements for Liquidators, a proof of debt procedure, and the creation of a basic set of insolvency rules to support the changes being introduced.