Recognising your limits: The treatment of segregated portfolio companies in onshore liquidations

more+
less-

Like most other developed offshore jurisdictions, the British Virgin Islands promotes a type of company which seeks to compartmentalise the assets and liabilities of various “portfolios” away from other portfolios and the company’s general assets. In the British Virgin Islands these are known as segregated portfolio companies (or “SPCs”) but in other jurisdictions the equivalent type of company is often known as a protected cell company or segregated cell company.

For those not already familiar with SPCs, a very brief summary is in order: an SPC is a company which compartmentalises its assets into designated portfolios. A creditor of one portfolio may only have recourse to the assets attributable to that portfolio and (when those are exhausted) to the assets attributable to the company as general assets. However, a creditor will not have recourse to the assets of a different portfolio (which are similarly ring fenced for the benefit of that portfolio’s creditors). But, despite the segregation of assets and liabilities into these different portfolios, the SPC is still regarded as a single legal entity.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Harney Westwood & Riegels | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×