Jersey Companies And The “Freedom Of Movement” In Insolvency

The “passporting” of Jersey companies into insolvency proceedings in the United Kingdom is a practice that has a certain vintage, being used in cases for the past 15 years, in which it has been seen as desirable for the companies concerned to have the advantage of rescue proceedings (particularly administration) available in England and Wales, but not yet in Jersey. Although in 2013, the practice came under scrutiny in the High Court in London in the Tambrook case, on appeal, the practice was sanctioned and continues to be available for use through the letter of request process being invoked.