PART 4Protected Cell Companies
CHAPTER 9Shares and shareholders
SECTION 6Distributions
Distributions to holders of shares in a cell125
1
This regulation applies where a protected cell company makes a distribution to a person holding a share issued by the protected cell company on behalf of a cell.
2
Where the cell is not a member of a group of cells, the protected cell company may only make the distribution if the following conditions are satisfied—
a
the distribution is made from assets held by the protected cell company on behalf of the cell; and
b
where the protected cell company has a liability to an undertaking arising under a contract made between the undertaking and the protected cell company acting on behalf of the cell, the undertaking has consented to the distribution (whether in the contract or otherwise).
3
Where the cell (“the relevant cell”) is a member of a group of cells, the protected cell company may only make the distribution if the following conditions are satisfied—
a
the distribution is made from assets held by the protected cell company on behalf of the relevant cell;
b
the protected cell company will, immediately after the distribution, hold sufficient assets on behalf of the relevant cell to enable the protected cell company to give effect to any enforceable arrangements made between the relevant cell and any other cell; and
c
where the protected cell company has a liability to an undertaking arising under a contract made between the undertaking and the protected cell company acting on behalf of a cell in that group of cells, the undertaking has consented to the distribution (whether in the contract or otherwise).