Protected Cell Company (PCC) in Liechtenstein

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Type and Duration

WTT, June 2010 until December 2014 (finished)

Coordinator

Chair of Company, Foundation and Trust Law

Main Research

Wealth Management

Field of Research

Wealth Planning

Description

The demands placed on Liechtenstein's financial centre are constantly increasing. In particular, with regard to company law, the parties involved require legal certainty in respect of allocation of liability in addition to flexibility. On the basis of this consideration, the Liechtenstein Government commissioned the Chair of Company, Foundation and Trust Law to draft a bill for the purposes of introducing a model of the protected cell company into the Liechtenstein Persons and Companies Act as part of the present project. On the basis of this draft bill, the provisions on protected cell companies (Art. 243ff. PGR) entered into force on 1 January 2015. These provisions take into account economic interests and also contain numerous provisions for the protection of creditors, thus creating a balance of interests. Ring-fencing the liability of legal entities is by no means new, as the means to do so were enshrined in the Investment Undertakings Act prior to the introduction of provisions governing protected cell companies into the PGR. Furthermore, ring-fencing is also permitted through the formation of (sub-)legal entities, trusts and trust enterprises with divisions. The implementation of the provisions for ring-fencing the liability of legal entities therefore represents the careful development of the PGR.

Reference to Liechtenstein

This project was aimed at drafting a bill on behalf of the Liechtenstein Government for the purposes of introducing a model for protected cell companies into the Liechtenstein Persons and Companies Act. On the basis of this draft bill, the provisions on protected cell companies (Art. 243ff. PGR) entered into force on 1 January 2015. These provisions take into account economic interests and also contain numerous rules for the protection of creditors, thus creating a balance of interests.

Keywords

Corporate Law, Knowledge and Technology Transfer, Asset Management, Economic Centre: Liechtenstein, comparative law

Publications

  • Schurr, F., & Wohlgenannt, I. (2015). Einführung der segmentierten Verbandsperson in das liechtensteinische Personen- und Gesellschaftsrecht (PGR). Liechtensteinische Juristen-Zeitung, 36(1), 23-34.

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  • Schurr, F. (2015). Protected Cell Companies and their Uses. Presented at the The 25th Oxford Offshore Symposium, Oxford University, Jesus College.

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  • Schurr, F. (2015, April 10). Patrimoni destinati a specifici affari - La disciplina italiana a confronto della Protected Cell Company del Liechtenstein, Guernsey e Malta. Seminar, Università degli studi di Padova.

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  • Schurr, F. (2015, October 15). Trends in Legislation on Protected Cell Companies (PCC) from a Comparative Perspective. Wealth Management: Selected Topics in Finance, Law and Tax, Centre for Banking and Finance Law (CBFL), Faculty of Law, National University of Singapore.

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