Coronavirus - Government measures in key jurisdictions - Flipbook - Page 42
Guernsey
Contributor: Mourant
1
2
3
42
Loans and
financial
support
Matthew Guthrie | matthew.guthrie@mourant.com | +44 1481 731 424
Abel Lyall | abel.lyall@mourant.com | +44 1481 739 364
Robert Shepherd | robert.shepherd@mourant.com | +44 1481 731 418
•
The States of Guernsey has agreed to underwrite 80% of any qualifying loan made
by participating banks to any trading business with less than GBP 10 million turnover.
•
Businesses regulated by the Guernsey Financial Services Commission (GFSC)
are excluded.
Employment
•
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
The States has introduced a payroll co-funding scheme similar to that in the UK
whereby employers can access a grant to cover 80% of the statutory minimum wage
(GBP 8.50 an hour) on the understanding that the employer pays at least the other
20%. The scheme will run initially up to mid-June for a limited number of sectors.
Detailed advice should be sought as to whether your sector would be covered.
•
In addition, any business with less than 10 staff as well as the self-employed may apply
for a one-off hardship grant of GBP 3,000.
•
Other measures to support business include the deferral of Social Insurance
contributions, local business rates and rent owed to States entities.
•
Mourant has outlined some key questions for employers to consider during COVID-19
•
Employment update as at March 2020
•
Consideration is being given by the Guernsey government to potential temporary
changes to Guernsey’s insolvency laws, in particular regarding wrongful trading,
though there are no clear proposals to date. Guernsey’s wrongful trading provisions
are somewhat more relaxed than the UK equivalent. Once a director concludes (or
ought to have concluded) that there was no reasonable prospect of the company
avoiding insolvency winding up, the director has a duty to take every step to minimise
losses to creditors “he ought reasonably have taken”. The Guernsey test introduces a
reasonableness qualification on the every step test not expressed in the UK statute.
•
Significant amendments to the insolvency laws were passed by the States on 15
January 2020 and are expected to come into effect shortly.
•
Changes to Guerney’s Insolvency Regime
Has the
government put in
place any new bank
funding schemes?
Insolvency
Has the
government made
any changes
to insolvency
legislation?
Government measures in key jurisdictions
4
5
6
7