228 Cellular and core assets

(1) The assets of a protected cell company are either cellular assets or core
assets.


(2) It is the duty of the directors of a protected cell company —

(a) to keep cellular assets separate and separately identifiable from
core assets; and

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

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


(4) The assets attributable to a cell of a protected 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) The core assets of a protected cell company comprise the assets of the
company attributable to the core of the company.

(6) The assets attributable to the core of a protected cell company comprise
—

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

(b) all other assets attributable to the core.

(7) For the purposes of subsections (4) and (6), the expression „reserves“
includes retained earnings, capital reserves and share premiums.

(8) Notwithstanding the provisions of subsection (2), the directors of a
protected cell company may cause or permit cellular assets and core
assets to be held —

(a) by or through a nominee; or

(b) by a company the shares and capital interests of which may be
cellular assets or core assets, or a combination of both.

(9) The duty imposed by subsection (2) is not breached by reason only that
the directors of a protected cell company cause or permit cellular assets
or core 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 subsection
(2).