Guernsey Protected Cell Companies are governed by the Companies (Guernsey) Law, 2008.
A Protected Cell Company is a single legal entity.
A Protected Cell Company comprises the "core" and the "cells".
The cells are not separate legal entities and they cannot contract in their own name. Instead, it is the Protected Cell Company that contracts in respect of the relevant cell, which must be identified.
The assets and liabilities of the cells of a Protected Cell Company are statutorily segregated i.e. the assets and liabilities of each are ring-fenced from each other, meaning that the creditors of a cell cannot seek recourse from the assets of the other cells or from the core.
A Protected Cell Company can pay a cellular dividend to the holders of the shares of a cell by reference only to the profits attributable to the relevant cell.
A Protected Cell Company is also considered as a single legal entity for tax purposes.