Technical Amendment to Jersey Company Law
With effect from 27 March 2013, the provisions of the Companies (Jersey) Law 1991 (“Law”) relating to the appointment of corporate directors by Jersey companies have been amended.
The appointment of corporate directors by Jersey companies is possible under the Law, provided that the corporate director is permitted to act as such by the terms of its registration under the Financial Services (Jersey) Law 1988. However, it has not previously been clear whether or not the corporate director must itself be a company incorporated in Jersey.
The Companies (Amendment No.7) (Jersey) Regulations 2013 now make it clear that a corporate director wherever incorporated can be appointed by a Jersey company, subject to the terms of registration under the Financial Services (Jersey) Law 1988, and provided that it does not itself have corporate directors.
The amendment is not retrospective, therefore if a Jersey company has previously had non-Jersey corporate directors, their actions taken prior to the amendment should now be ratified.
The regulations also lay down the particulars of the corporate director that must be entered in the register of directors.
Effect on BKS
Clarification of any ambiguity in legislation is always welcome. While corporate directors are not frequently appointed by companies under administration by BKS, we are willing to discuss any particular requirements in this respect on an individual basis with our clients.