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Limited Liability Partnerships (Amendment of Law) (Jersey) Regulations 201-: Lodging

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A decision made on 3 December 2012:

Decision Reference: MD-E-2012-0157

Decision Summary Title :

Limited Liability Partnerships (Amendment of Law) (Jersey) Regulations 2012

Date of Decision Summary:

30 November 2012

Decision Summary Author:

Director, Finance Industry Development

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

 

Written Report

Title :

 Limited Liability Partnerships (Amendment of Law) (Jersey) Regulations 2012

Date of Written Report:

18 September 2012

Written Report Author:

Director, Finance Industry Development

Written Report :

Public or Exempt?

Public

 

Subject:

 

Approval of the draft Limited Liability Partnerships (Amendment of Law) (Jersey) Regulations 2012

Decision(s):

 

The Minister for Economic Development approved the following draft Regulations:

 

i)                    Limited Liability Partnerships (Amendment of Law) (Jersey) Regulations 2012

 

The Minister further directed that the documents be lodged au Greffe for debate by the States at the earliest opportunity.

 

 

Reason(s) for Decision:

 

The Limited Liability Partnership (Jersey) Law 1997 (the “LLP Law”) has now been in force for some 15 years and requires modernising.

 

This decision allows an amendment to be made to the existing 1997 LLP Law by Regulations in order to remove the onerous requirements of the 1997 Law to encourage the use of the LLP in the island.

 

Resource Implications:

 

There are no financial or manpower implications arising as a result of this decision.

Action required:

 

The documents to be lodged au Greffe for debate by the States at the earliest opportunity.

 

Signature:

 

 

Senator AJH Maclean

Position:

 

Minister for Economic Development

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

Limited Liability Partnerships (Amendment of Law) (Jersey) Regulations 201-: Lodging

MINISTER FOR ECONOMIC DEVELOPMENT

 

 

i)                    Limited Liability Partnerships (Amendment of Law) (Jersey) Regulations 2012

 

  1. ISSUE

 

1.1  The Limited Liability Partnership (Jersey) Law 1997 (the “LLP Law”) has now been in force for some 15 years.

 

1.2  Due to outdated requirements in the LLP Law, no LLP structures have actually established themselves in Jersey. The principal requirement is for a £ 5 million bond which must be maintained by the LLP and cannot be used as security for lending.

 

 

  1. BACKGROUND

 

2.1 The LLP Law has now been in force for some 15 years. LLP’s were designed to be a convenient structure for use by both Jersey based businesses (such as Lawyers and Accountants) and international investors of all forms.  

 

2.2 No LLP structures have actually established themselves in Jersey because of the requirement for a £ 5 million bond. This requirement has, in effect, prevented the LLP Law from achieving the aims intended by the original legislation.

 

2.3  It has been decided to draft an amendment to the existing 1997 LLP Law by Regulations in order to remove the onerous requirements of the 1997 Law to encourage the use of LLPs.

 

2.4 The main requirement removed by the Regulations is the requirement for a £5 million bond. This is replaced by the requirement for a solvency statement to be filed on an annual basis by the partners of the LLP which confirms the solvency of the LLP and that it can continue to pay debts over the coming year. This provision is based on a policy adopted in the Companies (Jersey) Law 1991 and is deemed an appropriate for the jurisdiction.

 

2.5  Further changes will be prepared to be ready for lodging in 2013 to deal with issues linked to enabling the Law to be used by lawyers as a partnership vehicle.

 

 

  1. RECOMMENDATION

 

3.1.1        It is recommended that the Minister approve the draft regulations and direct that the documents be lodged au Greffe for debate by the States at the earliest opportunity.

 

 

 

Director, Finance Industry Development

Economic Development Department

 

30 November 2012

 

 

 

 

 

 

1

 

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