Fund-Technology.com

New company law increases Guernsey's appeal

Posted: 27 June 2008

Guernsey's new company legislation will come into effect July 2008 in the form of a new law. The Companies Guernsey Law, the "New Law" consolidates all of Guernsey's company legislation as well as making a number of significant improvements.

The New Law is designed to modernise the framework of corporate governance and does so in a flexible and attractive way so as to continue to make Guernsey companies appealing against their offshore competitors.

Gavin Farrell of Ozannes offshore law firm said: "The company laws were changed with, amongst others, the investment fund industry in mind. This was applied with due consideration toward the practicalities of this industry. In writing the new law, the government and the various industries, including the commercial law firms, have come together to provide legislation that adds to the attractiveness of the domicile.

"The new law was introduced due to the complicity of the old law, from 1994 which had a large number of amendments and secondary legislation attached to it. The new law has brought these aspects together in one consolidated law which is a lot more user-friendly."

A technological aspect of the new law is an investment in an advanced computer-based registry system. In addition to usual aspects of modern company registration, such as electronic filing and electronic searches, the New Law entitles a Guernsey company to be incorporated in, 2 hours or in some cases, 15 minutes.

The New Law abandons the capital maintenance doctrine which brings Guernsey into line with jurisdictions such as the BVI and New Zealand.

Click here for more information on Guernsey

Back to news