All sections · Part V: Shares · Sub-Part IV: Distributions
71 Cellular and non-cellular distributions by protected cell company
(1) Subject to section 72 and to any other requirement imposed by the
memorandum or articles of the company, the directors of a protected cell
by protected cell
company may authorise a distribution in respect of a cell („cellular
distribution“) at any time if they are satisfied, on reasonable grounds, that
the protected cell company will, immediately after the distribution, satisfy
the solvency test as it applies by virtue of subsection (2).
(2) In determining whether a protected cell company satisfies the solvency test
under subsection (1) for the purpose of making a cellular distribution in
respect of a cell, no account is to be taken of —
(a) the assets and liabilities, attributable to any other cell of the
company; or
(b) non-cellular assets and liabilities of the company.
(3) Subject to section 72 and to any other requirement imposed by the
memorandum or articles of the company, the directors of a protected cell
company may authorise a distribution in respect of its non-cellular assets
and liabilities (a „non-cellular distribution“) at any time if they are
satisfied, on reasonable grounds, that the protected cell company will,
immediately after the distribution, satisfy the solvency test as it applies by
virtue of subsection (4).
(4) In determining whether a protected cell company satisfies the solvency test
under subsection (3) for the purposes of making a non-cellular distribution,
no account need be taken of the assets and liabilities of any cell of the
protected cell company, except in the respect of any liability arising
pursuant to Sub-Part IV of Part XIII by which the protected cell company‘s
non-cellular assets may be utilised to meet any liability attributable to any
cell of a protected cell company.
memorandum or articles of the company, the directors of a protected cell
by protected cell
company may authorise a distribution in respect of a cell („cellular
distribution“) at any time if they are satisfied, on reasonable grounds, that
the protected cell company will, immediately after the distribution, satisfy
the solvency test as it applies by virtue of subsection (2).
(2) In determining whether a protected cell company satisfies the solvency test
under subsection (1) for the purpose of making a cellular distribution in
respect of a cell, no account is to be taken of —
(a) the assets and liabilities, attributable to any other cell of the
company; or
(b) non-cellular assets and liabilities of the company.
(3) Subject to section 72 and to any other requirement imposed by the
memorandum or articles of the company, the directors of a protected cell
company may authorise a distribution in respect of its non-cellular assets
and liabilities (a „non-cellular distribution“) at any time if they are
satisfied, on reasonable grounds, that the protected cell company will,
immediately after the distribution, satisfy the solvency test as it applies by
virtue of subsection (4).
(4) In determining whether a protected cell company satisfies the solvency test
under subsection (3) for the purposes of making a non-cellular distribution,
no account need be taken of the assets and liabilities of any cell of the
protected cell company, except in the respect of any liability arising
pursuant to Sub-Part IV of Part XIII by which the protected cell company‘s
non-cellular assets may be utilised to meet any liability attributable to any
cell of a protected cell company.
