By James Willmott, Robert Milner
On 10 July 2018 the States of Jersey enacted regulations to permit the demerger of Jersey companies, which will come into force on 1 September 2018.
A new process permits the demerger of a Jersey company into two or more Jersey companies (which may or may not include the demerging company)
• Requires shareholder approval (special resolution), a demerger instrument and directors’ solvency statements
• Shareholder, creditor and employee protections are built into the process
• No need for court approval provided the directors and prospective directors can make the necessary solvency statements
• Flexibility on how assets, liabilities etc are divided up and the final shareholder structure, including an ability to “cash out” shareholders