Voluntary Liquidation Procedure in Guernsey

Under Guernsey Law a company may be woundremuneration agreed. Fees are usually charged on
up voluntarily if:a time spent basis. Unlike the UK, in Guernsey
•The period (if any) fixed by the memorandumthere is no requirement for an appropriately
or articles setting out the duration of thequalified individual such as an Insolvency
company expiresPractitioner to conduct the liquidation. However,
•An event (if any) occurs on the occurrence ofgood sense dictates that such individual appointed
which the memorandum or articles provide thatwill have good knowledge of the Guernsey Law
the company be dissolvedand has a track record in acting as a Liquidator
For each of the above, there is a proviso that thefor this jurisdiction.
company passes an ordinary resolution that it beWhen the company is formally placed into
wound up voluntarily.liquidation, it shall cease to carry on business,
Further, a company can be wound up voluntarily'except in so far as may be expedient for the
if:beneficial winding up of the company.' The powers
•It passes a special resolution that it be woundof the director(s) also cease, unless a direction to
up voluntarilythe contrary is sanctioned by the Liquidator or the
Once the decision has been made to place thecompany in general meeting.
company into voluntary liquidation, for whateverIt is the Liquidators' role to bring the company to
appropriate reason, then the necessary resolutionsa formal end, realising the assets, settling any
will need to be filed at the Guernsey Registryliabilities and thereafter distributing any surplus
within thirty days of them being approved. Itassets according to the provisions of the Law.
should be noted that under The CompaniesWhen the affairs of the company have been fully
(Guernsey) Law, 2008, all special resolutions needwound up, then the Liquidator should present his
to be filed at the Registry within thirty days. Instatement or account of the winding up to a final
the case of voluntary liquidations ordinarygeneral meeting of the company. Following the
resolutions also need to be filed within thirty days.meeting the Liquidator will advise the Registrar
At this point, the Registrar will publish notice ofwho will publish notice of the same, and advising
the proposed voluntary liquidation of thethat the company is to be dissolved.
company, 'in such manner and for such period asPractical Company Secretarial Services have had
he thinks fit'.considerable experience conducting liquidations
Once the resolutions have been filed, and if theunder Guernsey Law, both for ICC's and Funds.
decision has not already been made, then aFor more details please contact
Liquidator should be appointed and theirsam@practicalcompanysecretary.co.