A recent development of the Jersey Companies Law will create further opportunities for foreign-owned companies to use Jersey vehicles to access the international capital markets and enhance Jersey’s position as a centre of excellence for international corporate finance activity.
New regulations have been approved by the States Assembly in Jersey and come into force on 23 February, which simplify the process for mergers between Jersey companies and foreign ones.
The improvements to the merger provisions in the Jersey Companies Law should prove an attractive feature to international investors looking at the opportunities to invest in Western markets. The regulations enable Jersey companies to merge with both foreign companies and other foreign bodies incorporated outside of Jersey. They also allow Jersey companies to merge, in any combination, with other Jersey companies or bodies incorporated in Jersey.
Geoff Cook, chief executive, Jersey Finance Limited, welcomed the changes and said that they would be of particular interest in some of the emerging markets such as India. He commented:
‘We know from our visits to India that there is huge interest in bringing Indian capital into Europe, but also a need to recover and repatriate profits made from that capital investment back to India. These provisions will provide institutional investors in India and elsewhere with more options when they establish entities in Jersey to meet investment objectives. Institutional and intermediary clients in Hong Kong and mainland China, for instance, may wish to take advantage of these new provisions when considering the use of Jersey holding companies for listing on exchanges. Furthermore our representative office in Mumbai, opening on 15th March, and our Greater China representative office ensure we effectively promote the benefits of this exciting development of the Jersey company offering to these key markets.’
Any proposed merger involving a body other than a Jersey company will require the consent of the Jersey Financial Services Commission, which must consider the interests of members, creditors and the public and the reputation of Jersey.
Note to Editors
- The Amendment’s full name is the Companies (Amendment No.5) (Jersey) Regulations 2011
- Previously it was only possible to merge a Jersey company with a foreign one indirectly by first bringing them into the same jurisdiction (via a continuance) and then merging them, a procedure that was cumbersome and more costly.