By Allison Nolan, Senior Associate and Rory Todd, Director, Hunter & Hunter Europe
Originally published in July 2002
A recent amendment to Cayman Islands company law extending the provisions relating to segregated portfolio companies provides an attractive alternative corporate structure with far reaching applications.
The ability to create a segregated portfolio company (SPC) has been part of the Cayman Islands Companies Law for some four years. Previously, these provisions were restricted to apply only to certain insurance companies. The new amendment extends the provisions relating to segregated portfolios to any exempted company. In essence, the new law provides that, whilst retaining its corporate existence as a single legal entity, a company may be registered as having segregated portfolios of assets, which may be traded independently and which during the life of the company and on liquidation are isolated in respect of creditor claims from liabilities of other segregated
