S T A T U T O R Y I N S T R U M E N T S
2002No. 2712
INSOLVENCY, ENGLAND AND WALES
COMPANIES
INDIVIDUALS
The Insolvency (Amendment) (No. 2) Rules 2002
29thOctober2002
29thOctober2002
1stJanuary2003
The Lord Chancellor, in the exercise of the powers conferred on him by sections 411 and 412 of the Insolvency Act 1986( 1), with the concurrence of the Secretary of State, and after consulting the committee existing for that purpose under section 413 of that Act, hereby makes the following Rules: -
Citation and commencement
1. - (1) These Rules may be cited as the Insolvency (Amendment) (No. 2) Rules 2002 and shall come into force on 1st January 2003.
(2) References in these Rules to "the commencement date" are to the date referred to in paragraph (1).
Interpretation
2. - (1) In these Rules references to the "principal Rules" are to the Insolvency Rules 1986( 2) and a Rule referred to by number alone means the Rule so numbered in the principal Rules.
(2) These Rules shall be construed as one with the principal Rules.
Amendments to Part 1 of the principal Rules
3. - (1) Subject to paragraph (2), Part 1 of the principal Rules has effect subject to the amendments set out in Part 1 of the Schedule to these Rules.
(2) The amendments to Part 1 of the principal Rules set out in Part 1 of the Schedule to these Rules do not apply in relation to a voluntary arrangement under Part I of the Act where -
(a) a proposal is made by the directors of a company and before the commencement date the intended nominee has endorsed a copy of the written notice of the proposal under Rule 1.4(3);(b) a proposal is made by the liquidator or the administrator (acting as the nominee) and before the commencement date the liquidator or administrator (as the case may be) has sent out a notice summoning the meetings under
section 3 of the Act as required by Rule 1.11; or(c) a proposal is made by the liquidator or the administrator of a company (not acting as the nominee) and before the commencement date the intended nominee has endorsed a copy of the written notice of the proposal under Rule 1.12(2);
and Part 1 of the principal Rules without the amendments made in Part 1 of the Schedule to these Rules shall continue to apply in such cases.
Amendments to Part 4 of the principal Rules
4. - (1) Subject to paragraph (2), Part 4 of the principal Rules has effect subject to the amendments set out in Part 2 of the Schedule to these Rules.
(2) The amendments to Part 4 of the principal Rules set out in Part 2 of the Schedule do not apply in relation to -
(a) a winding up by the court where the petition on which the winding-up order was made was presented prior to the commencement date; or(b) a voluntary winding up where the resolution for winding up was passed prior to the commencement date;
and Part 4 of the principal Rules without the amendments made in Part 2 of the Schedule to these Rules shall continue to apply in such cases.
Amendments to Part 5 of the principal Rules
5. - (1) Subject to paragraph (2), for Part 5 of the principal Rules there are substituted the provisions set out in Part 3 of the Schedule to these Rules.
(2) The substituted Part 5 of the principal Rules set out in Part 3 of the Schedule to these Rules does not apply in relation to a voluntary arrangement under Part VIII of the Act where a proposal is made by a debtor and before the commencement date the intended nominee has endorsed a copy of the written notice of the proposal under Rule 5.4(3) and Part 5 of the principal Rules as it stood before the commencement of these Rules shall continue to apply in such a case.
Amendments to Part 6 of the principal Rules
6. - (1) Subject to paragraph (2), Part 6 of the principal Rules has effect subject to the amendments set out in Part 4 of the Schedule to these Rules.
(2) The amendments to Part 6 of the principal Rules do not apply in relation to a bankruptcy where the petition was presented prior to the commencement date and Part 6 of the principal Rules without the amendments made in Part 4 of the Schedule to these Rules shall continue to apply in such a case.
Amendment to Rule 13.9
7. After paragraph (2) of Rule 13.9 there is inserted -
" (3) A reference to an "authorised person" is a reference to a person who is authorised pursuant to section 389A( 3) of the Act to act as nominee or supervisor of a voluntary arrangement proposed or approved under Part I or Part VIII of the Act.".
Amendments to Schedule 4 to the principal Rules
8. - (1) In the index to forms in Schedule 4 to the principal Rules -
(a) for the entries relating to Forms 1.1 to 1.4 there are substituted the entries set out in Part 5 of the Schedule to these Rules; and(b) after the entry for Form 5.4 there is inserted on a new line "5.5 Documents to be submitted to court under Rule 5.14".
(2) Subject to paragraphs (3) and (4), in Schedule 4 to the principal Rules -
(a) for Forms 1.1 to 1.4 there are substituted Forms 1.1 to 1.19 as set out in Part 6 of the Schedule to these Rules;(b) for Forms 5.2 and 5.3 there are substituted Forms 5.2 and 5.3 as set out in Part 6 of the Schedule to these Rules; and(c) after Form 5.4 there is inserted Form 5.5 as set out in Part 6 of the Schedule to these Rules.
(3) In any case to which paragraph (2) of Rule 3 of these Rules applies, sub-paragraph (a) of paragraph (2) of this Rule shall not apply and the forms prescribed for use in relation to voluntary arrangements under Part I of the Act as they stood before the coming into force of these Rules shall continue to be used.
(4) In any case to which paragraph (2) of Rule 5 of these Rules applies, sub-paragraph (b) of paragraph (2) of this Rule shall not apply and the forms prescribed for use in relation to voluntary arrangements under Part VIII of the Act as they stood before the coming into force of these Rules shall continue to be used.
Amendments to Schedule 5 to the principal Rules
9. In Schedule 5 to the principal Rules the entries relating to Rule 1.30 and Rule 5.30 are deleted.
Irvine of Lairg C
22nd October 2002,
I concur, on behalf of the Secretary of State,
Melanie Johnson,
Parliamentary Under-Secretary of State for Competition, Consumers and Markets, Department of Trade and Industry
29th October 2002,
SCHEDULE
Rules 3(1), 4(1), 5(1), 6(1), 8(1) and 8(2)
PART 1
AMENDMENTS TO PART 1 OF THE PRINCIPAL RULES
Amendments to Rule 1.1
1. In Rule 1.1 -
(a) in paragraph (2) for sub-paragraph (a) there is substituted - " (a) Chapter 2 applies where the proposal for the voluntary arrangement is made by the directors of the company and
(i) the company is neither in liquidation nor is an administration order (under Part II of the Act) in force in relation to it; and(ii) no steps have been taken to obtain a moratorium under Schedule A1 to the Act in connection with the proposal;";(b) in paragraph (2) for sub-paragraphs (c) and (d) there is substituted - " (c) Chapter 4 applies in the same case as Chapter 3, but where the nominee is not the liquidator or administrator;
(d) Chapter 5 applies in all the three cases mentioned in sub-paragraphs (a) to (c) above;(e) Chapters 7 and 8 apply to all voluntary arrangements with or without a moratorium; and(f) Chapter 9 applies where the proposal is made by the directors of an eligible company with a view to obtaining a moratorium."; and(c) after paragraph (3) there is inserted - " (4) In this Part, a reference to an "eligible company" is to a company that is eligible for a moratorium in accordance with paragraph 2 of Schedule A1 to the Act( 4).".
Amendments to Rule 1.3
2. In Rule 1.3 -
(a) after sub-paragraph (f) of paragraph (2) there is inserted - " (fa) How it is proposed to deal with the claim of any person who is bound by the arrangement by virtue of section 5(2)(b)(ii)( 5);"; and
(b) for sub-paragraph (p) of paragraph (2) there is substituted - " (p) the name, address and qualification of the person proposed as supervisor of the voluntary arrangement, and confirmation that he is either qualified to act as an insolvency practitioner in relation to the company or is an authorised person in relation to the company; and".
Amendment to Rule 1.7
3. In paragraph (2) of Rule 1.7 after the words "his opinion" where they first appear there is inserted "that the directors' proposal has a reasonable prospect of being approved and implemented and".
Substitution of Rule 1.8
4. For Rule 1.8 there is substituted -
"Replacement of nominee
1.8. - (1) Where a person other than the nominee intends to apply to the court under section 2(4)( 6) for the nominee to be replaced, (except in any case where the nominee has died) he shall give to the nominee at least 7 days' notice of his application.
(2) Where the nominee intends to apply to the court under section 2(4) of the Act to be replaced, he shall give at least 7 days' notice of his application to the person intending to make the proposal.
(3) No appointment of a replacement nominee shall be made by the court unless there is filed in court a statement by the replacement nominee -
(a) indicating his consent to act, and[FORM 1.8]
(b) that he is qualified to act as an insolvency practitioner in relation to the company or is an authorised person in relation to the company.".Amendment to Rule 1.12
5. In paragraph (6) of Rule 1.12 after the words "insolvency practitioner" where they appear for the second time there is inserted "or authorised person".
Amendment to Rule 1.13
6. For paragraph (3) of Rule 1.13 there is substituted -
" (3) The meetings may be held on the same day or on different days. If held on the same day, the meetings shall be held in the same place, but in either case the creditors' meeting shall be fixed for a time in advance of the company meeting.
(4) Where the meetings are not held on the same day, they shall be held within 7 days of each other.".
Amendments to Rule 1.14
7. In paragraph (2) of Rule 1.14 -
(a) the word "either" is omitted; and(b) for sub-paragraphs (a) and (b) there is substituted:" (a) a...
