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
corporate vehicles.
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.
