The introduction of the Companies Act (Shipping and Aviation Cell Companies) Regulations (the “Regulations”), has allowed companies in the shipping and aviation industry to create cell companies.
Similarly, a company already engaged in such business may convert its structure into a cell company, provided that such change is authorised by the memorandum and articles of association of the company.
In accordance with the Regulations, the following are the key features relating to cell companies:
(a) A distinctive feature, unique to cell companies shall be the inclusion of the words ‘Mobile Assets Protected Cell Company’ or the acronym MAPCC in the company’s name.
(b) Any assets forming part of a cell company may be either cellular or non-cellular.
(c) The Regulations place an obligation on cell companies to inform third parties that they are dealing with a cell company and furthermore that there are two regulations spelling out the recourse of creditors to cellular assets.
(d) Cell companies and their cells are also required to comply with the provisions of the Companies Act (Register of Beneficial Owners).
