According to Ernst & Young
A protected cell company is a corporate entity which holds assets in one or more segregated cells. The purpose of such a structure is to separate the assets in each cell from those in the other cells. In this way companies that are perhaps not large enough to form a captive in their own right may, for example, use a "captive"-type structure.
The assets of each cell must be kept separate and be separately identifiable from both the company's non-cellular assets and from assets attributable to other cells. In particular, cellular assets are only available to satisfy the creditors of the company, who are creditors in respect of that cell.
On the 31st of March 2004, the Protected Cell Companies Act 2004 came into effect. The act provides a framework for the operation of Protected Cell Companies on the Island. At first the use of protected cell companies was restricted to insurance. Provision was made within the act such that, should it be considered desirable in the future, PCC use can be extended to include other types of business.
Alongside this PCC act, the Insurance (Protected Cell Companies) Regulations 2004 came into effect. These regulations set out the requirements that must be observed by PCCs carrying on, or wishing to carry on, insurance business. The Protected Cell Companies (Forms) Regulations set out the prescribed form of an application to be incorporated as, or converted into, a PCC.
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