Cell Shares means shares created and issued by a cell company in respect of one of its cells. The proceeds of the issue have cellular assets attributable to that cell.
Cellular dividends may be paid in respect of cell shares by reference only to the cellular assets and liabilities, or the profits attributable to the cell.
When determining whether or not profits are available for issuing a cellular dividend, no account shall be taken of:
- the profits and losses, or the assets and liabilities, attributable to any other cell of the cell company
- Non-cellular profits and losses, or non-cellular assets and liabilities.
Furthermore, where any liability arises which is attributable to a specific MAPCC cell, only the cellular assets identifiable to that cell may be used to settle that liability. A creditor of a cell company shall not have any rights other than the rights referred to in this regulation.