News
A
third edition of Jersey Insolvency Law in Practice
in due to be published in 2005. Various amendments
to the Bankruptcy (Désastre) (Jersey) Law
1990 are likely to be enacted during 2004.
- The
Bankruptcy (Désastre) (Jersey)
Law 1990 and the Bankruptcy (Désastre)
(Jersey) Rules 1991.
The
principal form of insolvency procedure
(applicable both to corporate and
personal debtors) is known as désastre.
This is a system of bankruptcy regulated
by the Bankruptcy (Désastre)
(Jersey) Law (1990) and the common
law. Voluntary winding up of limited
liability companies is also available
under the Companies (Jersey) Law (1991).
Other
modes of relief from bankruptcy and
insolvency are available, though rarely
used, under statutory provisions, one
of which, a type of suspensory procedure
known as Remise de Biens, could
soon be replaced. The concept of
contractual Receivership is unknown
in Jersey.
Role
played by Government
All
compulsory bankruptcy and insolvency proceedings
are allocated to the Viscount of the Royal Court
(its Chief Executive Officer). There is, therefore,
limited scope for government regulator activity.
Role
played by private sector practitioners
Private
sector practitioners are appointed only in a
limited number of corporate proceedings. The
Jersey Financial Services Commission, an independent
statutory body which is responsible to the States
of Jersey, and the Viscount's Department of the
Royal Court, render advice and assistance, the
former performing regulatory functions.
Role
played by the Court
The
Royal Court of Jersey appoints the Viscount in
all cases of compulsory bankruptcy under the
Bankruptcy (Désastre) (Jersey) Law 1990
and has a supervisory jurisdiction in relation
to these cases. The supervisory jurisdiction
extends to private-sector practitioner appointees
to corporate windings up. The Royal Court of
Jersey is also available to
give directions to all appointees and assistance
to external courts generally on a reciprocal
basis.
Creditors
Creditors
have the power to initiate bankruptcy and insolvency
proceedings before the Royal Court of Jersey.
They have rights of information, submission and
objection in bankruptcy and insolvency proceedings.
Others
The
Viscount of the Royal Court is responsible for
examining and investigating debtors' activities
and for reporting offences or initiating action
and proceedings in relation to bankruptcy offences
and transgressions. He is also responsible for
progressing the system of discharge from personal
bankruptcy.
Does
the insolvency system in Jersey allow
for:
1.
|
Different
procedures for the insolvency of individuals
and the insolvency of companies? |
|
|
2.
|
Creditors
to accept an arrangement outside of formal
bankruptcy/liquidation proceedings? |
|
|
3.
|
Priority
payment for employee creditors? |
|
|
4.
|
Priority
payment for taxation debts? |
|
|
5.
|
Automatic
disqualification of directors of failed companies
from managing other companies? |
|
|
6.
|
Recognition
of insolvency proceedings being conducted
in another jurisdiction? |
|
|
7.
|
A
government agency to undertake insolvency
administration work? |
|
|
8.
|
Some
form of licensing of private sector practitioners? |
|
|
9.
|
A
review of the remuneration claimed by an
insolvency practitioner by either a court
or other government regulator? |
|
|
10.
|
A
mandatory scale of fees applicable to insolvency
practitioner remuneration? |
|
|
11.
|
Surveillance
of the work of private sector practitioners
by a government regulator? |
|
|
12.
|
Collation
of insolvency statistics by a government
regulator? |
|
|
|
