BRITISH VIRGIN ISLANDS - Mossack Fonseca & Co.

Limitation on
transfer of
segregated
portfolio
assets from
segregated
portfolio
company.
26/2005
26/2005
83
(a) the nature of the company;
(b) how the segregation of the assets and liabilities of the company
impacts upon members of the company and persons with
whom the company transacts; and
(c) the effect that any existing deficit in the assets of one or more
segregated portfolios of the company has on the general assets
of the company.
149. (1) The segregated portfolio assets attributable to any segregated
portfolio of a segregated portfolio company may only be transferred to
another person in accordance with, or as permitted by, this section.
(2) A transfer, pursuant to subsection 1), of segregated portfolio assets
attributable to a segregated portfolio of a segregated portfolio
company shall not, of itself, entitle creditors of that company to have
recourse to the assets of the person to whom the segregated portfolio
assets were transferred.
(3) Subject to subsections (8) and (9), no transfer of the segregated
portfolio assets attributable to a segregated portfolio of a segregated
portfolio company may be made except under the authority of, and in
accordance with the terms and conditions of, an order of the Court
under this section.
(4) The Court shall not make a segregated portfolio transfer order in
relation to a segregated portfolio of a segregated portfolio company
(a) unless it is satisfied
(i) that the creditors of the company entitled to have recourse
to the segregated portfolio assets attributable to the
segregated portfolio consent to the transfer; or
(ii) that those creditors would not be unfairly prejudiced by the
transfer; and
(b) without hearing the representations of the Commission on the
matter.
(5) The Court, on hearing an application for a segregated portfolio transfer
order, may
(a) make an interim order or adjourn the hearing, conditionally or
AE/ET/Pub./bg/03.2007