Insolvency Law at Jersey (Crown Dependency)
In Jersey, a Crown Dependency of the United Kingdom, insolvency law is governed by two primary statutes:
Companies (Jersey) Law 1991 – regulates corporate insolvency, including creditors' winding up and court-ordered liquidations. (Jersey insolvency | ICAS)
Bankruptcy (Désastre) (Jersey) Law 1990 (BDJL) – addresses personal insolvency and the désastre procedure. (New Law Journal: Overview of insolvency in the Channel Islan | Collas Crill)
🏢 Corporate Insolvency Procedures
Jersey offers several mechanisms for corporate insolvency:
1. Creditors’ Winding Up (CWU)
Initiation: Creditor-initiated if a debt exceeds £3,000 and the company is cash flow insolvent. (New Law Journal: Overview of insolvency in the Channel Islan | Collas Crill)
Process: A creditor applies to the Royal Court of Jersey for a CWU order. (New Law Journal: Overview Of Insolvency In The Channel Islands - Insolvency/Bankruptcy - Insolvency/Bankruptcy/Re-Structuring - Jersey)
Liquidator Appointment: An insolvency practitioner is appointed to manage the winding-up process. (Jersey insolvency | ICAS)
Moratorium: Once the CWU commences, no legal actions can be taken against the company without court approval.
Legal Framework: Based on the Companies (Jersey) Law 1991. (New Law Journal: Overview Of Insolvency In The Channel Islands - Insolvency/Bankruptcy - Insolvency/Bankruptcy/Re-Structuring - Jersey)
2. Désastre (Bankruptcy) Procedure
Origin: Rooted in Jersey's customary law, the désastre procedure is unique to the island. (New Law Journal: Overview Of Insolvency In The Channel Islands - Insolvency/Bankruptcy - Insolvency/Bankruptcy/Re-Structuring - Jersey)
Initiation: Can be initiated by a creditor or the company itself. (Jersey insolvency | ICAS)
Role of the Viscount: Upon declaration, the Viscount of Jersey assumes control of the debtor's assets and liabilities. (Jersey Corporate Insolvency Procedures - Insolvency/Bankruptcy - Jersey)
Asset Distribution: The Viscount facilitates the distribution of assets to creditors. (Jersey corporate insolvency - the two regimes | Bedell Cristin)
Legal Framework: Governed by the Bankruptcy (Désastre) (Jersey) Law 1990. (New Law Journal: Overview Of Insolvency In The Channel Islands - Insolvency/Bankruptcy - Insolvency/Bankruptcy/Re-Structuring - Jersey)
3. Winding Up on Just and Equitable Grounds
Initiation: Can be applied for by the company, a director, or a shareholder. (New Law Journal: Overview of insolvency in the Channel Islan | Collas Crill)
Grounds: Applicable when there is a loss of trust in management, deadlock among members, or other equitable reasons. (New Law Journal: Overview of insolvency in the Channel Islan | Collas Crill)
Process: The Royal Court appoints a liquidator to manage the winding-up process.
Legal Framework: Based on the Companies (Jersey) Law 1991. (New Law Journal: Overview Of Insolvency In The Channel Islands - Insolvency/Bankruptcy - Insolvency/Bankruptcy/Re-Structuring - Jersey)
👤 Role of the Viscount
The Viscount of Jersey plays a central role in insolvency proceedings: (New Law Journal: Overview Of Insolvency In The Channel Islands - Insolvency/Bankruptcy - Insolvency/Bankruptcy/Re-Structuring - Jersey)
In Désastre: Assumes control of the debtor's assets and liabilities.
In CWU: Acts as the official receiver, overseeing the liquidation process.
Powers: Includes selling assets, investigating the debtor's affairs, and reporting to the Royal Court.
Regulation: Ensures compliance with insolvency laws and addresses complaints about liquidators. (Insolvency - Courts.je)
📋 Register of Approved Liquidators
To act as a liquidator in Jersey, individuals must be registered:
Eligibility: Must meet specific criteria, including relevant qualifications and experience.
Application: Submit an application to the Viscount's Department. (How to register as an approved liquidator - Courts.je)
Fees: An annual fee is required for registration. (How to register as an approved liquidator - Courts.je)
Public Register: A list of approved liquidators is maintained for public access. (Insolvency - Courts.je)
⚖️ Legal Framework and Resources
Companies (Jersey) Law 1991: Provides the legal basis for corporate insolvency procedures.
Bankruptcy (Désastre) (Jersey) Law 1990: Governs personal insolvency and the désastre procedure. (Jersey insolvency | ICAS)
Viscount's Department: Oversees insolvency proceedings and maintains the Register of Approved Liquidators. (How to register as an approved liquidator - Courts.je)
Royal Court of Jersey: Has the authority to make orders and provide directions in insolvency matters.
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