Segregated portfolio company: Difference between revisions
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A form of [[espievie]] where [[limited recourse]] is achieved by operation of the company’s constitutive documents, which segregates the company’s innards into segregated cells, assets in each of which are fully protected from claimants pertaining to other [[cell]]s. While their host [[espievie]] does, the cells in themselves do not have [[legal personality]] though. Contrast with [[incorporated cell company]], where the cells ''do'' have separate legal personality, and with normal old {{tag|SPV}}s, where you can achieve more or less the same thing contractually with a combination of [[limited recourse]] and [[security]]. | A form of [[espievie]] — seen in the wild in the Cayman Islands, jersey and [[tax haven|places like that]] — where [[limited recourse]] is achieved by operation of the company’s [[constitutive documents]], which segregates the company’s innards into segregated cells, assets in each of which are fully protected from claimants pertaining to other [[cell]]s. While their host [[espievie]] does, the cells in themselves do not have [[legal personality]] though. Contrast with [[incorporated cell company]], where the cells ''do'' have separate legal personality, and with normal old {{tag|SPV}}s, where you can achieve more or less the same thing contractually with a combination of [[limited recourse]] and [[security]]. | ||
{{seealso}} | {{seealso}} | ||
Revision as of 17:45, 19 March 2019
A form of espievie — seen in the wild in the Cayman Islands, jersey and places like that — where limited recourse is achieved by operation of the company’s constitutive documents, which segregates the company’s innards into segregated cells, assets in each of which are fully protected from claimants pertaining to other cells. While their host espievie does, the cells in themselves do not have legal personality though. Contrast with incorporated cell company, where the cells do have separate legal personality, and with normal old SPVs, where you can achieve more or less the same thing contractually with a combination of limited recourse and security.