Cell Companies In Jersey

INTRODUCTION

A cell company is a corporate vehicle that is permitted to segregate its assets and liabilities between different cells of itself, for different purposes, with the result that a creditor's recourse against the cell company is limited to whichever cell was transacted with. Where a cell becomes insolvent, the remaining cells of the structure are not affected and continue to operate as normal.

Cell companies are available in many jurisdictions, both onshore and offshore (for example, segregated account companies in Bermuda and protected cell companies in Guernsey). With effect from 1 February 2006, the Companies (Jersey) Law 1991 (the "Companies Law"), as amended by the Companies (Amendment No. 8) (Jersey) Law 2005 (the "Amendment Law"), permits the establishment of cell companies in Jersey.