We can support you with establishment and on-going administration of debt securities and equities issuance programmes.
With the global outbreak of COVID-19, many listed companies in the UK are looking at ways to raise capital quickly in order to finance their expenses and expenditure during a time of reduced revenue.
Our expert David Carswell explains how a Jersey cash box could help UK PLCs.
A fast and efficient way to raise capital could be through the Jersey ‘Cash Box’ solution.
A cash box provides a mechanism for negating the requirement for the statutory pre-emption rights and formalities required under the UK companies law when issuing securities directly for a cash subscription.
By allowing publicly listed companies to instead issue securities to investors in exchange for a non-cash subscription, they can raise capital without being subject to the same restrictions. For their subscription monies, investors receive securities in a Jersey company, incorporated and wholly owned by the PLC.
The PLC then issues its own securities to the investor’s in exchange for the securities in the Jersey Co.
The investors receive their PLC securities, and the PLC receive securities in a Jersey Co (the non-cash subscription). The PLC can then either redeem the securities for the investor’s subscription monies or extract the funds by way of a dividend or on the winding up of the Jersey Co.
How can Hawksford assist?
We are based in Jersey, a jurisdiction tried and tested for providing cash box solutions. We can incorporate companies on a same day basis, where time is of the essence.
The company wind-up process is also quick and there is no requirement to appoint a liquidator. Jersey companies do not require local directors, meaning that the management and control can be based in the UK and the company would not be liable to Jersey income tax. Jersey has no capital gains or withholding taxes.
There is also no stamp duty or other Jersey taxes on the transfer of shares.
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