Companies (Amendment No. 7) (Jersey) Regulations 201-: Lodged 'au Greffe'

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

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The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 1 February 2013:

Decision Reference: MD-E-2013-0011

Decision Summary Title :

Proposed Companies (Amendment No.7) (Jersey) Regulations 201-

Date of Decision Summary:

28/01/2013

Decision Summary Author:

Director,

Finance Industry Development

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title :

Lodging of Proposed Companies (Amendment No.7) (Jersey) Regulations 201-

Date of Written Report:

28/01/2013

Written Report Author:

Director,

Finance Industry Development

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

Companies (Amendment No.7) (Jersey) Regulations 201-

Decision(s):

The Minister decided to lodge the draft Companies (Amendment No.7) (Jersey) Regulations 201- au Greffe with a view to the Regulations being debated at the States sitting on 19 March 2013.

Reason(s) for Decision:

The Regulations will permit foreign companies to be corporate directors of Jersey companies provided they meet all other requirements of the Companies (Jersey) Law 1991 (at present, only Jersey companies can act in this capacity). The change has been approved by the financial services industry, Jersey Finance Limited and the Jersey Financial Services Commission.

Resource Implications:

There are no financial or manpower costs for the States as a result of this decision.

Action required:

That the Regulations are lodged au Greffe for debate by the States at the States sitting on 19 March 2013.

Signature:

Senator AJH Maclean

Position:

Minister for Economic Development

Date Signed:

Date of Decision (If different from Date Signed):

Companies (Amendment No. 7) (Jersey) Regulations 201-: Lodged 'au Greffe'

MINISTER FOR ECONOMIC DEVELOMENT

REPORT ON:

Proposed Companies (Amendment No. 7) (Jersey) Regulations 201-

Introduction

The concept of “corporate directors” was previously introduced into the Companies (Jersey) Law 1991 (CJL). The difficulty arises due to the terms of Article 73(4) of the CJL which provide that a body corporate shall not be a director of a company unless the body corporate is a company, is permitted under the Financial Services (Jersey) Law 1998 to act as a director and itself has no corporate directors.

As a matter of policy, it is considered that there is no reason why a foreign company should not act as a director of a Jersey company. This is comparable to the position regarding directors who are individuals and any person may be a director of a Jersey company regardless of their country of residence.

The Jersey Financial Services Commission are also willing to register foreign companies under the FSJL for the conduct of trust company business (which includes acting as a director), provided that the putative director can satisfy the Commission that it is a fit and proper person to perform this activity, a foreign company can satisfy the requirements for a corporate director set out in Article 73(4).

Consultation

The Finance Industry Development Unit have consulted with the industry (via Jersey Finance Limited) and the Jersey Financial Services Commission, all of whom are agreeable in principle to the CJL being changed to clarify that foreign companies can act as directors of Jersey companies.

Financial and manpower implications

There are no financial or manpower implications for the States of Jersey that would arise from the adoption of these Regulations.

Director, Finance Industry Development

28 January 2013