Regulatory Alerts2004-01-01
Protected Cell Companies Act 2004
The Protected Cell Companies Act 2004 establishes the framework for the incorporation and conversion of companies into Protected Cell Companies (PCCs), which are single legal entities capable of creating distinct cells to segregate and protect assets. It mandates directors to keep cellular assets separate and identifiable, outlines rules for cell share capital, dividends, and capital reduction, and defines the attribution and liability of both cellular and non-cellular assets. The Act also details procedures for receivership and liquidation concerning cells, and implies terms in transactions to prevent creditors from seeking recourse against cellular assets for liabilities not specifically attributable to that cell.
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