Segregated Account Companies
Andrew A. Martin · January 19th, 2010
Segregated Accounts Companies (variously known as ‘cell companies’, ‘segregated portfolio companies’, ‘protected cell companies’ and ‘incorporated cell companies’) have been in existence in different commonwealth jurisdictions from the early 1990’s but have not yet given rise to any reported litigation analysing their constitution, effectiveness or the remedies available against them.
In the case Tensor Endowment Limited v New Stream Capital Fund Limited, the Bermuda Supreme Court had to consider an application by a segregated account owner and/or creditor for the appointment of a receiver over the assets of one of the segregated accounts on the grounds of insolvency or that it was ‘just and equitable’ to appoint a receiver.
PLEASE NOTE: this article is in the process of being updated