By Raulin Amy
The Companies (Demerger) (Jersey) Regulations 2018 (the Regulations) are now in force. The Regulations introduce a new demerger regime for Jersey companies. In addition to the new regime, a demerger by way of a court sanctioned scheme of arrangement is still possible as an alternative under the Companies (Jersey) Law 1991 (the Companies Law).
The new demerger regime will be of particular interest to those who use, or are considering using, Jersey companies in their structures. It brings further flexibility to using a Jersey company and has a range of potential uses, such as:
- implementing a pre-sale reorganisation
- modifying a group structure to separate existing businesses and risks
- restructuring a portfolio of assets