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It is expected that the Companies (Amendment No 4) (Jersey) Regulations 2010 will soon come into force. Among other things, certain amendments to the rules contained in Part 16 of the Companies (Jersey) Law 1991 are being made in response to the impact of the EU Statutory Audit Directive on Jersey-based auditors.
In 2004 the internet gambling business Betonsports Plc was floated on AIM and the profits from the sale of its shares found their way into two Jersey trusts, whose sole trustee at the time was a Jersey trustee. Following the arrest of the company's former owner, Gary Kaplan, an application was made to the Jersey court at the behest of the US Department of Justice for a saisie judiciaire in respect of Kaplan's property in Jersey.
A recent Royal Court of Jersey judgment demonstrates the court's approach to an application to set aside a trust and certain gifts made under it on the grounds of mistake. It also provides some useful guidance on the approach to be taken by convening parties on trust-related applications.
Since the introduction of the Codes of Practice for Fund Services Business and related changes to the funds legislation in Jersey, in most cases a Jersey entity that wishes to carry on fund services business in relation to a publicly offered non-Jersey fund will be able to do so entirely under its Financial Services (Jersey) Law 1998 registration, acting in accordance with the codes.
The Foundations (Jersey) Law 2009 will soon come into force. The law will permit the establishment of Jersey foundations, which will be incorporated bodies that can hold assets, transact business and sue and be sued in their own name. The flexibility of the law makes Jersey an attractive jurisdiction for clients considering establishing a foundation for private wealth management purposes.
As a result of the shortage of liquidity in the bank lending markets, many businesses need additional funding. One source of funds might be a private placement of shares. This update looks at some of the Jersey law issues that may arise in the context of a private placement of shares by a Jersey company.