On the 1st February, 1997, Guernsey introduced a new concept in corporate law, the Protected Cell Company.
Protected Cell Companies are corporate structures in which the assets of different share classes are free from contagion from the liabilities of other share classes. It is anticipated that this type of structure will be particularly attractive for offshore funds with various classes of shares, umbrella or multi-class funds, affording each individual share class the same limited liability that would be obtained if separate corporate structures were used for each different category of investor.
In addition, the structure will be particularly useful to offshore captive insurance companies which would like to segregate distinct areas of risk and activity into different 'cells'. It is also envisaged that protected cell companies will be attractive to businesses which previously did not warrant the establishment of their own captive insurance company. These businesses will now
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