Updating the island's insolvency laws has been put forward as one of the new P&R President's main priorities this political term. Guernsey’s Insolvency Rules Committee Member Ben Rhodes spoke to Express about what the proposed new laws could mean for the parties involved, and their impact on the island's reputation.
"I’m very pleased to hear that Deputy Ferbrache recognises the need for updated regulations and is supportive of the ongoing reform.
Arguably the biggest change to come will be a better-defined distinction between ‘solvent’ and ‘insolvent’ voluntary liquidations. Creditors of an insolvent company can expect to receive more communication from, what now must be, an independent liquidator.
There will also be a requirement for administrators and liquidators of insolvent companies to report to the Guernsey Registry (and the GFSC if it is a regulated entity) on the conduct of the directors to consider potential grounds for a disqualification order.
A modern and effective corporate insolvency regime is important for the financial services industry and the broader business community. The proposed changes are consistent with other ‘creditor friendly’ jurisdictions such as England and reflect Guernsey’s reputation as a safe place to do business.
Businesses, large or small, need to familiarise themselves with the changes. I am happy to discuss this with corporate service providers, corporate directors and anyone else that might need further information.”
Pictured top: Director of Recovery & Reorganisation at Grant Thornton Channel Islands Ben Rhodes.