The Protected Cell Companies Act provides, inter alia, that a protected cell company (PCC) may create one or more cells for the purpose of segregating and protecting cellular assets. As a result, the rights of creditors are limited to the assets of the cell of which they are creditors.
In addition, the PCC may, with respect to any of its cells, create and issue shares (cell shares) the proceeds of which (cell share capital) are comprised in the cellular assets attributable to the cell with respect to which the cell shares were issued. A PCC may also pay a dividend on individual cells (a cellular dividend), subject to available profits, and by reference to the assets and liabilities of the cell.
A company may be incorporated as a PCC or converted, if permitted by its articles, into a PCC. The name of the company must include reference to its PCC status and each cell must have its own distinct name or designation.
Insurance companies and collective investment schemes require the consent and approval from the FSC before operating as a PCC.
An annual license fee of £4,745, plus £1,775 per cell, is presently payable to the FSC.