S.L. 386.22 Art. 8Cellular and non- cellular assets.

(1) The assets of a cell company shall be either cellular assets or non-cellular assets.

(2) It shall be the duty of the directors of a cell company to keep:

(a) cellular assets separate and separately identifiable from non-cellular assets;

(b) cellular assets attributable to each cell separate and separately identifiable from cellular assets attributable to other cells; and

(c) separate records, accounts, statements and other documents as may be necessary to evidence the assets and liabilities of each cell, as distinct and separate from the assets and liabilities of other cells in the same company.

(3) The cellular assets of a cell company comprise the assets of the cell company attributable to the cells of that cell company.

(4) The assets attributable to a cell of a cell company comprise:

(a) assets represented by the proceeds of cell share capital and reserves attributable to the cell; and

(b) all other assets attributable to the cell.

(5) For the purposes of sub-regulation (4), the expression "reserves" includes retained earnings, capital reserves and share premiums.

(6) The non-cellular assets of a cell company comprise the assets of the cell company which are not cellular assets.

(7) Notwithstanding the provisions of sub-regulation (2), the directors of a cell company may cause or permit cellular assets and non-cellular assets to be held by a company, the shares and capital interests of which may be cellular assets or non-cellular assets, or a combination of both.

(8) The duty imposed by sub-regulation (2) is not breached by reason only that the directors of a cell company cause or permit cellular assets or non-cellular assets, or a combination of both, to be collectively invested or collectively managed by an investment manager, provided that the assets in question remain separately identifiable in accordance with sub-regulation (2).