Protected Cell Company (PCC)

In conjunction with the Mutual Fund law and the Insurance law, the Protected Cell Company Act also passed in October 2004 brought in an exciting new concept enabling a single corporate entity to have separate "cells" each of which could legally exist and function entirely separately from the others. The debts and liabilities of one cell cannot be discharged from any other without express permission of cell "owners" This proviso is a useful tool for asset protection purposes and for insurance and fund business as it enables a more proactive and more speculative approach to be considered for at least a part of the funds concerned and at the same time protects other funds from creditors. All prospective Protected Cell Companies are required to apply for licensing specifically as a PCC prior to incorporation and each "cell" is also required to be specifically approved along with the cell "owner".