The Government is aware that these unprecedented times have caused difficulty and hardship for many local businesses.
A range of support measures has been announced which are intended to protect businesses and to enable them to restart trading as soon as the crisis permits. However, the Government recognises that there will be a stage when some businesses will be looking at whether they can and should continue. In particular, directors may be considering what their responsibilities are if their company is experiencing difficulties, and may have in mind the provisions relating to wrongful trading.
Government officials have liaised with the Viscount, the Law Society, and the Association of Restructuring and Insolvency Experts to co-ordinate the release of a Guidance Note from the Viscount and a Practice Statement from the Law Society, intended to assist directors of a Jersey company to understand the position and what steps they may wish to consider depending on the particular circumstances of their company.
Jersey Business is available to assist and advise local businesses.
The Government is considering whether other measures may be appropriate relating to insolvency and how businesses can be assisted at this time. We will keep matters under review as circumstances develop, and take further steps if and when required.
For more information see the guidance note on wrongful trading and Covid 19
Wrongful trading under Jersey Law practice statement on the Jersey Law Society website