ARTICLE · 26 FEBRUARY 1999
Company Law In Guernsey - Protected Cell Companies
Since 1 February 1997 it has been possible to incorporate a new company as, or to convert an existing company into, a protected cell company.
A protected cell company is a single legal entity whose assets can be allocated to different cells within the company. Where assets have been allocated to a cell, only creditors who have entered into transactions with that cell or who have otherwise become creditors of the cell concerned have recourse against those assets. Cellular assets must be both separately identifiable from non cellular assets and separately identifiable from the cellular assets attributable to the other cells.
Not all assets belonging to a protected cell company have to be allocated to a cell. Where they are not, the assets will be available to any creditor of the company.
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