The Insolvency (Amendment) Rules 2010

Publication Date:January 01, 2010
 
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2010No. 686

INSOLVENCY

The Insolvency (Amendment) Rules 2010

3rdMarch2010

10thMarch2010

6thApril2010

The Lord Chancellor has consulted the committee existing for the purposes of section 413 of the Insolvency Act 1986( 1) ("the Act").

The Lord Chancellor makes the following Rules-

in exercise of the powers conferred by sections 411 and 412( 2) of the Act,

with the concurrence of the Secretary of State, and

with the concurrence of the Chancellor of the High Court (by authority of the Lord Chief Justice under sections 411(7) and 412(6)( 3) of the Act) in relation to those Rules which affect court procedure.

Citation and commencement

1.These Rules may be cited as the Insolvency (Amendment) Rules 2010 and come into force on 6th April 2010.

Amendments to and revocations in the Insolvency Rules 1986

2.The Insolvency Rules 1986( 4) ("the 1986 Rules") are amended as set out in Schedule 1 to these Rules.

3.Schedule 2 to these Rules contains new forms substituted for existing forms as provided in paragraph 558 of Schedule 1 to these Rules.

4.After Part 12 to the 1986 Rules insert Part 12A as set out in Schedule 3 to these Rules.

5.The following Rules in the 1986 Rules are revoked-

in Part 1, Rule 1.2;

in Part 2, Rule 2.73;

in Part 3, Rules 3.36 to 3.38;

in Part 4, Rules 4.77, 4.148B, 4.175, 4.190 and 4.223;

in Part 5, Rules 5.15, 5.16 and 5.44;

in Part 6, Rules 6.20, 6.36, 6.99, 6.102 and 6.235;

in Part 7, Rules 7.2, 7.18, 7.53, 7.54, 7.57 and 7.58;

in Part 12, Rules 12.4 to 12.17, 12.19, 12.20 and 12.22.

Transitional provisions

6.-(1)The transitional provisions in Schedule 4 to these Rules have effect.

(2)Rule 4.54(6)(a) (notice of meeting in winding up to be gazetted) does not apply where the notice is of a meeting to be held under section 93 or 105 (annual meetings in voluntary liquidations)( 5).

Special administration regimes and old administrations

7.Schedule 5 to these Rules has effect in respect of companies and societies listed in section 249(1) of the Enterprise Act 2002( 6) and any case in which a petition for an administration order was presented before 15th September 2003.

Amendments to the Insolvency (Amendment) Rules 2009

8.-(1)Rule 3 of the Insolvency (Amendment) Rules 2009( 7) is amended as follows.

(2)In paragraph (1), for "paragraph (2)" substitute "paragraphs (1A) and (2)".

(3)After paragraph (1) insert-

"(1A)On and after 6th April 2010, the amendment made by Rule 62 of these Rules to the principal Rules applies in respect of an advertisement appearing in the Gazette or a newspaper after that date where before 6th April 2009 the conditions contained in paragraph (1)(a) or (b) of this Rule were met.".

Jack Straw

Lord Chancellor and Secretary of State for Justice

3rd March 2010

Ministry of Justice

I concur, by the authority of the Lord Chief Justice

The Rt Hon Sir Andrew Morritt

The Chancellor of the High Court

3rd March 2010

I concur, {on behalf of the Secretary of State}

Ian Lucas

Minister for Business and Regulatory Reform

3rd March 2010

Department for Business, Innovation and Skills

SCHEDULE 1

Rule 2

Amendments to the Insolvency Rules 1986

General amendments

1.Except in the Forms contained in Schedule 4 to the 1986 Rules, for each word in the first column wherever it appears substitute the corresponding word in the second column.

Old words

New words

Fit (when used of decisions by the court)

Just

Leave (except in Rule 4.20)

Permission

Sign

Authenticate

Signing

Authenticating

Signs

Authenticates

Signed

Authenticated

Signature

Authentication

Amendments to Rule 0.2

2.-(1)Rule 0.2 (construction and interpretation) is amended as follows.

(2)Omit paragraph (2).

(3)In paragraph (3), for "paragraphs (1) and (2)" substitute "paragraph (1)".

Amendments to Rule 1.3

3.-(1)Rule 1.3 (contents of the proposal) is amended as follows.

(2)In paragraph (2)-

(a) in sub-paragraph (p), at the end omit "and";

(b) after sub-paragraph (q) add-

"; and

(r) such other matters (if any) as the directors consider appropriate for ensuring that members and creditors are enabled to reach an informed decision on the proposal."

(3)In paragraph (3) for "former's" substitute "nominee's".

Amendments to Rule 1.5

4.-(1)Rule 1.5 (statement of affairs) is amended as follows.

(2)In paragraph (1)-

(a) for "within 7 days after their" substitute "at the same time as the";

(b) omit "or within such longer time as he may allow,".

(3)For paragraph (4), substitute-

"The statement must be verified by a statement of truth made by at least one director.".

Amendment to Rule 1.6

5.-(1)Rule 1.6 (additional disclosure for assistance of nominee) is amended as follows.

(2)In paragraph (3) for "him" to "records" substitute "the nominee such access to the company's accounts and records as the nominee may require".

Amendments to Rule 1.8

6.-(1)Rule 1.8 (replacement of nominee) is amended as follows.

(2)In paragraphs (1) and (2), for "7" substitute "5 business".

Amendments to Rule 1.9

7.-(1)Rule 1.9 (summoning of meetings under s 3) is amended as follows.

(2)In paragraph (1) omit "less than 14, nor".

(3)In paragraph (2)(a), for "whom he" substitute "whose address the nominee".

(4)In paragraph (3), for "Rule 1.19(1)" substitute "Rule 1.19(2)".

Amendment to Rule 1.10

8.-(1)Rule 1.10 (preparation of proposal) is amended as follows.

(2)For paragraph (1) substitute-

"(1)The responsible insolvency practitioner's proposal must specify all such matters as under Rule 1.3 (subject to paragraph (3) below) in Chapter 2 the directors of the company would be required to include in a proposal by them, with the addition, where the company is in administration or liquidation, of the nature and amount of its preferential creditors.".

Amendment to Rule 1.11

9.-(1)Rule 1.11 (summoning of meetings under s 3) is amended as follows.

(2)In paragraph (1)(a), for "whom the insolvency practitioner is" substitute "whose address the insolvency practitioner is otherwise".

Amendments to Rule 1.13

10.-(1)Rule 1.13 (summoning of meetings) is amended as follows.

(2)In paragraph (1), for "the person summoning the meeting ("the convener") shall" substitute "the nominee must".

(3)In paragraph (4), for "7" substitute "5 business".

Amendments to Rule 1.14

11.-(1)Rule 1.14 (the chairman at meetings) is amended as follows.

(2)In paragraph (1) for "convener shall" substitute "nominee must".

(3)In paragraph (2)(c) for "convenor" substitute "nominee".

Amendment to Rule 1.16

12.-(1)Rule 1.16 (attendance by company officers) is amended as follows.

(2)In paragraph (1), for "convener" wherever it appears substitute "nominee".

Amendments to Rule 1.19

13.-(1)Rule 1.19 (requisite majorities (creditors)) is amended as follows.

(2)For paragraphs (1) and (2) substitute-

"(1)Subject to paragraph (2), at the creditors' meeting, a resolution is passed when a majority (in value) of those present and voting in person or by proxy have voted in favour of it.

(2)A resolution to approve the proposal or a modification is passed when a majority of three-quarters or more (in value) of those present and voting in person or by proxy have voted in favour of it.".

(3)In paragraph (3)(a), for "convener of the meeting" substitute "nominee".

Amendment to Rule 1.21

14.-(1)Rule 1.21 (conduct of meetings) is amended as follows.

(2)After paragraph (4) insert -

"(4A)Once only in the course of a meeting the chairman may, without an adjournment, declare it suspended for any period up to 1 hour.".

Amendment to Rule 1.22

15.-(1)Rule 1.22 (resolutions to follow approval) is amended as follows.

(2)In paragraph (1), for "may" where it appears first substitute "must".

Amendment to Rule 1.22A

16.-(1)Rule 1.22A (notice of order made under section 4A(6)) is amended as follows.

(2)In paragraph (5), for "7" substitute "5 business".

Amendments to Rule 1.24

17.-(1)Rule 1.24 (report of meetings) is amended as follows.

(2)In paragraph (3), after "4" insert "business".

(3)In the second sentence of paragraph (4), for "immediately" substitute "as soon as reasonably practicable".

Amendment to Rule 1.25

18.-(1)Rule 1.25 (revocation or suspension of the arrangement) is amended as follows.

(2)In paragraphs (4)(b) and (5), for "7" substitute "5 business".

Substitution of Rule 1.26

19.For Rule 1.26 (supervisor's accounts and reports) substitute-

(1)Paragraph (2) applies where the voluntary arrangement authorises or requires the supervisor-

(a) to carry on the business of the company or trade on its behalf or in its name; or

(b) to realise assets of the company; or

(c) otherwise to administer or dispose of any of its funds.

(2)The supervisor must keep accounts and records of the supervisor's acts and dealings in, and in connection with, the arrangement, including in particular records of all receipts and payments of money.

(3)The supervisor must preserve any accounts and records in paragraph (2) which-

(a) were kept by any other person who has acted as supervisor of the arrangement; and

(b) are in the supervisor's possession.

(4)Subject to paragraph (5), the supervisor must in respect of each period of 12 months ending with the anniversary of the commencement of the arrangement send within 2 months of the end of that period a report on the progress and prospects for the full implementation of the voluntary arrangement to-

(a) the registrar of companies;

(b) the company;

(c) all those of the company's creditors who are bound by the voluntary arrangement of whose address the supervisor is aware;

(d) subject to paragraph (7) below, the members of the company; and

(e) if the company is not in liquidation, the company's auditors (if any) for the time being.

(5)The supervisor is released from an obligation to send a report under paragraph (4), if an obligation to send a final report under Rule 1.29 arises in the period of 2 months mentioned in paragraph (4).

(6)Where the supervisor is authorised or required to do any of the things mentioned in paragraph (1)(a) to (c), the report required to be...

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