S.L. 386.22 Art. 7Creation of cells. S.L. 386.03. Cap. 234. Cap. 503.

(1) A cell company may create one or more cells for the purposes of segregating and protecting cellular assets in the manner provided in these regulations. The decision or resolution approving the creation of a cell together with the instruments giving effect to the decision or resolution, or an authentic copy thereof, shall be delivered for registration to the Registrar who, being satisfied that the requirements of this regulation have been complied with, shall register the cell or cells.

A cell company shall pay the fee prescribed in item (a) of the Schedule to the Companies Act (Fees) Regulations for each cell created.

(2) If a company is converted into a cell company in terms of these regulations, the company shall, within forty days from the day of its conversion into a cell company, by resolution of its directors attribute assets of the company to a particular cell of the company. The company shall, within fourteen days from such resolution, deliver a notice to the Registrar specifying the subject of this resolution and outlining the specific description of every asset being attributed to a particular cell. Upon publication of such notice, such assets shall be considered to be cellular assets of a particular cell. COMPANIES)

(3) Pursuant to the provisions of sub-regulation (2) and the attribution of a particular asset to a cell of a cell company, the interest of an owner, following the aforementioned attribution, in a registered aircraft or ship in terms of the Merchant Shipping Act, the Aircraft

Registration Act or any other law or regulation as the case may be, shall be noted accordingly, as long as any registered mortgagee or registered security interest holder has provided its consent in this regard. Such attribution shall not prejudice any rights of any creditor of the company existing prior to the conversion to a cell company or that of a registered mortgagee or registered security interest holder in relation to any registered mortgage or any security interest in terms of any applicable law or regulation.