SPC

Segregated Portfolio Company (SPC). Section 232 of the Companies Law (2004 Revision) enables a Company, as a single legal entity, to segregate assets and liabilities between segregated portfolios (SP) established within the Company. Although each segregated portfolio must be separately identified they are not separate legal entities apart from the Company. The Cayman Islands law provides that assets and liabilities of each portfolio are legally separate from those of another SP. Therefore, creditors of an SP have recourse to the assets of that particular SP, and to any general assets of the Company (being assets not belonging to any particular SP) exceeding the Company’s minimum capital requirements, if the assets of that particular SP are insufficient to meet the creditor’s claim.