Andrew Pinel, Partner
The proposed introduction of the draft Limited Liability Companies (Jersey) Law 201- (the “LLC Law”) is aimed at the growing US market by providing a familiar vehicle for US funds into Jersey. The idea of introduction limited liability companies (“LLC”) into Jersey legislation for this purpose is due to their treatment of transparency for tax liability.
The proposed LLC Law will combine elements of both Jersey limited companies, LLPs and traditional partnerships. An LLC would have a separate legal personality and would be able to enter into contracts in its own name but would not be a body corporate.
An LLC would need one or more members and if appointed, one or more managers, who may or may not be members.
The managers will be under a duty to act in good faith in the performance of their management duties, much like directors for limited companies. Members would not owe any fiduciary duties to the LLC or any other members.