Art 125 scheme to move a Jersey company to England
Case briefing: In the matter of Bathroom Brands plc
A Jersey plc, whose four classes of shares were not listed, sought to cancel them all, reissue all its shares to a new, private, English parent company which would then issue shares in identical numbers and classes back to the original shareholders. This was part of a plan to leave Jersey and relocate the business to the UK.
To make such schemes of arrangement binding on the shareholders the three requirements of CJL Art 125 must be followed, first seek an order convening a meeting of shareholders and creditors, second put the scheme to the shareholders at the meeting and third ask the court to exercise its discretion to sanction the arrangement. That sanction will be given if the requirements of the law are met, there is no mala fides coercion of a minority and an honest and intelligent shareholder acting in his interests would approve of the plan.
This case is a text book example of how to conduct this exercise. Things would have been a lot easier if England had continuance rules, but it doesn’t.
If you need help or advice on moving a Jersey company to England please contact Christopher on: +44 (0) 1534 632255 or email email@example.com.