Legislation has come into effect in the Isle of Man which
provides for the incorporation of a new type of corporate vehicle,
the Incorporated Cell Company ("ICC").
The ICC adds to the Island's impressive array of flexible
An ICC creates incorporated cells, each of which has its own separate legal identity, can hold assets and sue or be sued in its own name. This results in the assets and liabilities of any particular cell being legally ringfenced from those of any other cell, offering greater security and protection.
It is anticipated that ICCs will be of particular interest to those involved in the captive insurance industry. The Isle of Man is a leading jurisdiction for captive insurance operations.
The Incorporated Cells Act 2010 and the Insurance (ICC) Regulations 2011 initially restrict the use of an ICC to the carrying on of insurance business, but provision is made for permitted uses to be extended to other types of business. It is anticipated that the permitted use of ICCs will indeed be extended, just as the initial uses for a Protected Cell Company ("PCC") were extended since their introduction in 2004. The permitted use of a PCC in the Isle of Man is now unlimited.
A PCC is different to an ICC. A PCC also creates cells and the assets and liabilities of each cell are ringfenced. However, the cells of a PCC do not have separate legal personality. A PCC can be incorporated in the Isle of Man under the Protected Cell Companies Act 2004 or the Companies Act 2006 (which established the New Manx Vehicle).
The corporate team at Dougherty Quinn ("DQ") has extensive experience of PCCs both in the regulated and unregulated sectors. Head of corporate at DQ, Tom Maher, advised on the establishment of the very first PCC (an authorised insurer) on the Isle of Man in 2004.
For more information about ICCs, PCCs or any Isle of Man corporate vehicle, please contact Tom Maher. For information on BVI corporate vehicles, please contact Stephen Dougherty.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.