The Insolvency (Amendment) Rules 2010

(7–CVL) If not fixed as above, the basis of the liquidator’s remuneration shall, on application by the liquidator, be fixed by the court, and the provisions of paragraphs (2) to (4) apply as they do to the fixing of the basis of remuneration by the liquidation committee; but such an application may not be made by the liquidator unless the liquidator has first sought fixing of the basis in accordance with paragraph (3C) or (5), and in any event may not be made more than 18 months after the date of the liquidator’s appointment.

Amendments to Rule 4.127A

218

• (1) Rule 4.127A (liquidator’s entitlement to remuneration where it is not fixed under Rule 4.127) is amended as follows.

• (2) After the heading insert “(NO CVL APPLICATION)”.

• (3) In paragraph (1)—

• (a) after “official receiver and” insert “the basis of”;

• (b) after “fixed” inserted “or treated as fixed”.

Amendment to Rule 4.127B

219

• (1) Rule 4.127B (liquidator’s remuneration where the liquidator realises assets on behalf of chargeholder) is amended as follows.

• (2) After paragraph (3) add—

(4) The sum to which the liquidator is entitled under paragraph (2) or (3) shall be taken out of the proceeds of the realisation effected under that paragraph.

Substitution of Rule 4.129

220

For Rule 4.129 (recourse of liquidator to meeting of creditors) substitute—

(4.129A) If the basis of the liquidator’s remuneration has been fixed by the liquidation committee, or by the creditors’ committee under Rule 2.106(3C) in a case falling within Rule 4.127(5A) in which the administrator had not requested an increase under Rule 2.107, and the liquidator considers the rate or amount to be insufficient or the basis to be inappropriate, the liquidator may request that the rate or amount be increased or the basis changed by resolution of the creditors.

Amendment to Rule 4.130

221

• (1) Rule 4.130 (recourse to the court) is amended as follows.

• (2) For paragraph (1) substitute—

(1) If the liquidator considers that the basis of remuneration fixed by the liquidation committee, or by resolution of the creditors, or as under Rule 4.127(5A) or (6), is insufficient or inappropriate, the liquidator may apply to the court for an order changing it or increasing its amount or rate.

Amendments to Rule 4.131

222

• (1) Rule 4.131 (creditors’ claim that remuneration is excessive) is amended as follows.

• (2) In the heading, after “is” insert “or other expenses are”.

• (3) For paragraph (1) substitute—

(1) Any secured creditor, or any unsecured creditor with either the concurrence of at least 10% in value of the creditors (including that creditor) or the permission of the court, may apply to the court for one or more of the orders in paragraph (4). (1A) Application may be made on the grounds that— (a) the remuneration charged by the liquidator, (b) the basis fixed for the liquidator’s remuneration under Rule 4.127, or (c) expenses incurred by the liquidator, is or are, in all the circumstances, excessive or, in the case of an application under sub-paragraph (b), inappropriate. (1B) The application must, subject to any order of the court under Rule 4.49E(5), be made no later than 8 weeks (or, in a case falling within Rule 4.108, 4 weeks) after receipt by the applicant of the progress report, or the draft report under Rule 4.49D, which first reports the charging of the remuneration or the incurring of the expenses in question (“the relevant report”).

• (4) In paragraph (2)—

• (a) for “an ex parte” substitute “a”;

• (b) for “7” substitute “5 business ”;

• (c) at the end of the first sentence add, “but which is without notice to any other party”.

• (5) For paragraph (4) substitute—

(4) If the court considers the application to be well-founded, it must make one or more of the following orders— (a) an order reducing the amount of remuneration which the liquidator was entitled to charge; (b) an order fixing the basis of remuneration at a reduced rate or amount; (c) an order changing the basis of remuneration; (d) an order that some or all of the remuneration or expenses in question be treated as not being expenses of the liquidation; (e) an order that the liquidator or the liquidator’s personal representative pay to the company the amount of the excess of remuneration or expenses or such part of the excess as the court may specify; and may make any other order that it thinks just; but an order under sub-paragraph (b) or (c) may be made only in respect of periods after the period covered by the relevant report.

New Rules after Rule 4.131

223

After Rule 4.131 insert—

(4.131A) (1) Where, after the basis of the liquidator’s remuneration has been fixed, there is a material and substantial change in the circumstances which were taken into account in fixing it, the liquidator may request that it be changed. (2) The request must be made— (a) where the liquidation committee fixed the basis, to the committee; (b) where the creditors fixed the basis, to the creditors; (c) where the court fixed the basis, by application to the court; (d) where the remuneration was determined by application of the realisation scale under Rule 4.127A, to the liquidation committee if there is one or otherwise to the creditors; and subject to paragraph (3), Rules 4.127 to 4.131 apply as appropriate. (3) Where Rule 4.129A is applied in accordance with paragraph (2) of this Rule, ignore the words “in which the administrator had not requested an increase under Rule 2.107”. (4) Any change in the basis for remuneration applies from the date of the request under paragraph (2) and not for any earlier period. (5) This Rule does not apply where the liquidator is the official receiver. (4.131B) (1) If a new liquidator is appointed in place of another, any determination, resolution or court order in effect under the preceding provisions of this Section of this Chapter immediately before the former liquidator ceased to hold office continues to apply in respect of the remuneration of the new liquidator until a further determination, resolution or court order is made in accordance with those provisions. (2) This Rule does not apply where the new liquidator is the official receiver. (4.131C) (1) In a case in which the basis of the liquidator’s remuneration is a set amount under Rule 4.127(2)(c) and the liquidator (“the former liquidator”) ceases (for whatever reason) to hold office before the time has elapsed or the work has been completed in respect of which the amount was set, application may be made for determination of what portion of the amount should be paid to the former liquidator or the former liquidator’s personal representative in respect of the time which has actually elapsed or the work which has actually been done. (2) Application may be made— (a) by the former liquidator or the former liquidator’s personal representative within the period of 28 days beginning with the date upon which the former liquidator ceased to hold office, or (b) by the liquidator for the time being in office if the former liquidator or the former liquidator’s personal representative has not applied by the end of that period. (3) Application must be made— (a) where the liquidation committee fixed the basis, to the committee; (b) where the creditors fixed the basis, to the creditors for a resolution determining the portion; (c) where the court fixed the basis, to the court for an order determining the portion. (4) The applicant must give a copy of the application to the liquidator for the time being in office or to the former liquidator or the former liquidator’s personal representative, as the case may be (“the recipient”). (5) The recipient may within 21 days of receipt of the copy of the application give notice of intent to make representations to the liquidation committee or the creditors or to appear or be represented before the court, as the case may be. (6) No determination may be made upon the application until expiry of the 21 days referred to in paragraph (5) or, if the recipient does give notice of intent in accordance with that paragraph, until the recipient has been afforded the opportunity to make representations or to appear or be represented, as the case may be. (7) If the former liquidator or the former liquidator’s personal representative (whether or not the original applicant) considers that the portion determined upon application to the liquidation committee or the creditors is insufficient, that person may apply— (a) in the case of a determination by the liquidation committee, to the creditors for a resolution increasing the portion; (b) in the case of a resolution of the creditors (whether under paragraph (1) or under sub-paragraph (a)), to the court for an order increasing the portion; and paragraphs (4) to (6)apply as appropriate.

Amendment to Rule 4.132

224

• (1) Rule 4.132 (liquidator deceased – winding up by court) is amended as follows.

• (2) In paragraph (2), after “partner in” where it appears first insert “or an employee of”.

Amendments to Rule 4.133

225

• (1) Rule 4.133 (liquidator deceased – creditors’ voluntary liquidation) is amended as follows.

• (2) In paragraph (2)(a)—

• (a) after “partner in” insert “or an employee of”, and

• (b) after “partner” where it appears second insert “in the firm”.

Amendments to Rule 4.143

226

• (1) Rule 4.143 (removal of liquidator by the court) is amended as follows.

• (2) In the first sentence of paragraph (2)—

• (a) for “an ex parte” substitute “a”;

• (b) for “7” substitute “5 business ”;

• (c) at the end add, “but which is without notice to any other party”.

Amendments to Rule 4.145

227

• (1) Rule 4.145 (liquidator deceased – members’ voluntary liquidation) is amended as follows.

• (2) In paragraph (2)(a)—

• (a) after “partner in” insert “or an employee of”, and

• (b) after “partner” where it appears second insert “in the firm”.

Amendments to Rule 4.148A

228

• (1) Rule 4.148A (remuneration of liquidator in members’ voluntary winding up) is amended as follows.

• (2) In paragraph (2), for “The remuneration shall be fixed either” substitute “The basis of remuneration shall be fixed”.

• (3) For all the words in paragraph (2) after sub-paragraph (b) substitute—

, or (c) as a set amount. (2A) The basis of remuneration may be fixed as any one or more of the bases set out in paragraph (2), and different bases may be fixed in respect of different things done by the liquidator. (2B) Where the basis of remuneration is fixed as set out in paragraph (2)(a), different percentages may be fixed in respect of different things done by the liquidator. (2C) It is for the company in general meeting to determine— (a) which of the bases set out in paragraph (2) are to be fixed and (where appropriate) in what combination under paragraph (2A), and (b) the percentage or percentages (if any) to be fixed under paragraphs (2)(a) and (2B) and the amount (if any) to be set under paragraph (2)(c).

• (4) For paragraph (4) substitute—

(4) If not fixed as above, the basis of the liquidator’s remuneration shall, on application by the liquidator, be fixed by the court, and the provisions of paragraphs (2) to (3) apply as they do to the fixing of the basis of remuneration by the company in general meeting; but such an application may not be made by the liquidator unless the liquidator has first sought fixing of the basis in accordance with paragraph (2C), and in any event may not be made more than 18 months after the date of the liquidator’s appointment.

• (5) For paragraph (6) substitute—

(6) If the liquidator considers that the basis of the remuneration fixed by the company in general meeting is insufficient or inappropriate, the liquidator may apply to the court for an order changing it or increasing its amount or rate.

• (6) In paragraph (7), after “paragraph” insert “(4) or”.

New Rules after Rule 4.148A

229

After Rule 4.148A[^f00020] insert—

(4.148C) (1) Members of the company with at least 10% of the total voting rights of all the members having the right to vote at general meetings of the company, or any member with the permission of the court, may apply to the court for one or more of the orders in paragraph (6) on the grounds that— (a) the remuneration charged by the liquidator, (b) the basis fixed for the liquidator’s remuneration under Rule 4.148A, or (c) expenses incurred by the liquidator, is or are, in all the circumstances, excessive or, in the case of an application under sub-paragraph (b), inappropriate. (2) Application must, subject to any order of the court under Rule 4.49E(5), be made no later than 8 weeks (or 4 weeks when the liquidator has resigned in accordance with Rule 4.142) after receipt by the applicant of the report or account which first reports the charging of the remuneration or the incurring of the expenses in question (“the relevant report”). (3) The court may, if it thinks that no sufficient cause is shown for a reduction, dismiss the application; but it must not do so unless the applicant has had the opportunity to attend the court for a hearing of which the applicant has been given at least 5 business days’ notice but which is without notice to any other party. (4) If the application is not dismissed under paragraph (3), the court must fix a venue for it to be heard and give notice to the applicant accordingly. (5) The applicant must at least 14 days before the hearing send to the liquidator a notice stating the venue and accompanied by a copy of the application and of any evidence which the applicant intends to adduce in support of it. (6) If the court considers the application to be well-founded, it must make one or more of the following orders— (a) an order reducing the amount of remuneration which the liquidator was entitled to charge; (b) an order fixing the basis of remuneration at a reduced rate or amount; (c) an order changing the basis of remuneration; (d) an order that some or all of the remuneration or expenses in question be treated as not being expenses of the liquidation; (e) an order that the liquidator or the liquidator’s personal representative pay to the company the amount of the excess of remuneration or expenses or such part of the excess as the court may specify; and may make any other order that it thinks just; but an order under sub-paragraph (b) or (c) may be made only in respect of periods after the period covered by the relevant report. (7) Unless the court orders otherwise, the costs of the application must be paid by the applicant and are not payable as an expense of the liquidation. (4.148D) If a new liquidator is appointed in place of another, any determination or court order in effect under Rule 4.148A immediately before the former liquidator ceased to hold office continues to apply in respect of the remuneration of the new liquidator until a further determination or court order is made in accordance with that Rule. (4.148E) (1) In a case in which the basis of the liquidator’s remuneration is a set amount under Rule 4.148A(2)(c) and the liquidator (“the former liquidator”) ceases (for whatever reason) to hold office before the time has elapsed or the work has been completed in respect of which the amount was set, application may be made for determination of what portion of the amount should be paid to the former liquidator or the former liquidator’s personal representative in respect of the time which has actually elapsed or the work which has actually been done. (2) Application may be made— (a) by the former liquidator or the former liquidator’s personal representative within the period of 28 days beginning with the date upon which the former liquidator ceased to hold office, or (b) by the liquidator for the time being in office if the former liquidator or the former liquidator’s personal representative has not applied by the end of that period. (3) Application must be made— (a) where the company in general meeting fixed the basis, to the company for a resolution determining the portion; (b) where the court fixed the basis, to the court for an order determining the portion. (4) The applicant must give a copy of the application to the liquidator for the time being in office or to the former liquidator or the former liquidator’s personal representative, as the case may be (“the recipient”). (5) The recipient may within 21 days of receipt of the copy of the applicationgive notice of intenttomake representations to the company in general meeting or to appear or be represented before the court, as the case may be. (6) No determination may be made upon the application until expiry of the 21 days referred to in paragraph (5) or,if the recipient does give notice of intent in accordance with that paragraph, until the recipient has been afforded the opportunity to make representations or to appear or be represented, as the case may be. (7) If the former liquidator or the former liquidator’s personal representative (whether or not the original applicant) considers that the portion determined upon application to the company in general meeting is insufficient, that person may apply to the court for an order increasing the portion; and paragraphs (4) to (6)apply as appropriate.

Amendments to Rule 4.153

230

• (1) Rule 4.153 (formalities of establishment) is amended as follows.

• (2) In paragraph (3)—

• (a) omit “or representative under section 323 of the Companies Act”; and

• (b) after “establishing the committee” add “or, in the case of a corporation, by its duly appointed representative”.

• (3) In paragraph (3A)—

• (a) for “issue” substitute “be issued”;

• (b) at the end add “and must be issued as soon as reasonably practicable thereafter”.

• (4) Omit paragraph (5).

• (5) In paragraph (6), after “companies” add “as soon as reasonably practicable”.

• (6) Omit paragraph (7).

• (7) In paragraph (8), after “membership,” insert “as soon as reasonably practicable”.

Amendments to Rule 4.156

231

• (1) Rule 4.156 (meetings of the committee) is amended as follows.

• (2) In paragraph (2), for “3 months” substitute “6 weeks”.

• (3) In paragraph (3)—

• (a) at the beginning insert “Subject to paragraph (4),”;

• (b) for “7” substitute “5 business”.

• (4) After paragraph (3) add—

(4) Where the liquidator has determined that a meeting should be conducted and held in the manner referred to in Rule 12A.26(2), the notice period mentioned in paragraph (3) is 7 business days. (5) In addition to any functions conferred on a committee by any provision of the Act, a committee must assist the liquidator in discharging the liquidator’s functions and act in relation to that liquidator in such manner as may from time to time be agreed.

Amendments to Rule 4.157

232

• (1) Rule 4.157 (the chairman at meetings) is amended as follows.

• (2) In paragraph (1), for “nominated by him” substitute “appointed by the liquidator in writing”.

• (3) In paragraph (2), for “nominated” substitute “appointed”.

Amendments to Rule 4.159

233

• (1) Rule 4.159 (committee-members’ representatives) is amended as follows.

• (2) In paragraph (2), omit “or any authorisation under section 323 of the Companies Act”.

• (3) For paragraph (4) substitute—

(4) No member may be represented by— (a) another member of the committee; (b) a person who is at the same time representing another committee member; (c) a body corporate; (d) an undischarged bankrupt; (e) a disqualified director; or (f) a person who is subject to a bankruptcy restrictions order (including an interim order), a bankruptcy restrictions undertaking, a debt relief restrictions order (including an interim order) or a debt relief restrictions undertaking.

• (4) Omit paragraph (5).

Amendment to Rule 4.163

234

• (1) Rule 4.163 (vacancy (creditor members)) is amended as follows.

• (2) In paragraph (2), for “the minimum required under Rule 4.152” substitute “3”.

Amendment to Rule 4.164

235

• (1) Rule 4.164 (vacancy (contributory members)) is amended as follows.

• (2) In paragraph (2), for “the minimum required by Rule 4.154(4) or, as the case may be, 4.171(5)” substitute “3”.

Amendment to Rule 4.167.

236

• (1) Rule 4.167 (resolutions by post) is amended as follows.

• (2) In the heading, for “by post”, substitute “otherwise than at a meeting”.

Substitution of Rule 4.171

237

For Rule 4.171 (composition of committee when creditors paid in full) substitute—

(4.171A) (1) Where the creditors have been paid in full together with interest in accordance with section 189, the liquidator must— (a) issue a certificate to that effect; and (b) send to the registrar of companies a notification to that effect together with a copy of the certificate referred to in sub-paragraph (a). (2) On the issue of a certificate pursuant to paragraph (1), the creditor members of the liquidation committee cease to be members of the committee. (3) The committee continues in existence unless— (a) it is abolished by a decision of a meeting of contributories; or (b) the number of members is less than 3 and 28 days have elapsed since the issue of the liquidator’s certificate. (4) At any time in the period referred to in paragraph (3)(b) where the committee consists of less than 3 contributory members it is suspended and cannot act. (5) The certificate referred to in paragraph (1)(a) must include the following information— (a) the name of the liquidator; and (b) a statement by the liquidator certifying that the creditors of the company have been paid in full together with interest in accordance with section 189; and must be authenticated and dated by the liquidator.

Amendments to Rule 4.173

238

• (1) Rule 4.173 (preliminary) is amended as follows.

• (2) In paragraph (1)—

• (a) in sub-paragraph (a), omit “and”;

• (b) after sub-paragraph (b) add—

(c) a creditors’ committee was established under paragraph 57 of Schedule B1 to the Act, and (d) as at the date of the making of the order under section 140(1) the committee has at least three, but not more than five, members (leaving out of account any member whose debt is fully secured).

Substitution of Rule 4.174

239

For Rule 4.174 (continuation of creditors’ committee), substitute—

(4.174A) Where a committee of the kind mentioned in Rule 4.173 is in existence in the circumstances mentioned in that Rule— (a) that committee is deemed to have been established under section 141; (b) no action may be taken under section 141(1) to (3) to establish any other committee; (c) in the case of a solvent winding up, the liquidator must, on not less than 14 days’ notice summon a meeting of contributories, in order to elect (if it so wishes) contributory members of the liquidation committee, up to 3 in number; and (d) pending the issue of the liquidator’s certificate referred to in Rule 4.176 the committee is suspended and cannot act.

Amendments to Rule 4.176

240

• (1) Rule 4.176 (liquidator’s certificate) is amended as follows.

• (2) In paragraph (1), for “shall” substitute “must ascertain whether the members of the committee agree to continue to act as members of the committee; and if the minimum number of 3 members required by Rule 4.152 to form a committee have signified their agreement so to act, the liquidator must”.

• (3) In paragraph (2), for “Rule 4.175(2)” substitute “Rule 4.174A(c)”.

• (4) Omit paragraph (3).

• (5) In paragraph (4), omit “; and the liquidator’s certificate shall not issue until at least the minimum number of persons required under Rule 4.175 to form a committee have signified their agreement”.

• (6) For paragraph (6) substitute—

(6) The liquidator must send the certificate in paragraph (1) or as the case may be the amended certificate in paragraph (5) to the registrar of companies.

• (7) In paragraph (7) for “shall report the change to the court” substitute “must send an amended certificate to the registrar of companies”.

Amendments to Rule 4.177

241

• (1) Rule 4.177 (obligations of liquidator to committee) is amended as follows.

• (2) In paragraph (1), for “may be” substitute “reasonably practicable”.

• (3) In paragraph (2), for “that date” substitute “the date of issue of the liquidator’s certificate”.

Amendment to Rule 4.182A

242

• (1) Rule 182A (distribution in members’ voluntary winding up) is amended as follows.

• (2) For paragraph (2) substitute—

(2) In addition to the standard contents, the notice under paragraph (1) must— (a) state that the liquidator intends to make a distribution to creditors; and (b) specify a date (“the last date for proving”) up to which proofs may be lodged at a specified place, which must be the same date for all creditors and not less than 21 days from that of the notice.

Amendments to Rule 4.183

243

• (1) Rule 4.183 (division of unsold assets) is amended as follows.

• (2) The existing provision becomes paragraph (1).

• (3) In paragraph (1), after “committee” insert, “(or if there is no such committee, a meeting of the company’s creditors)”.

• (4) After paragraph (1) add—

(2) The liquidator must comply with paragraph (3) in respect of any account or report which the liquidator is required to prepare pursuant to any of the following— (a) section 104A (progress report to company and creditors at year’s end); (b) section 106 (final meeting prior to dissolution – creditors’ voluntary winding up); (c) section 146 (duty to summon final meeting – winding up by the court); (d) Rule 4.49B (reports to creditors and members –winding up by the court); (e) Rule 4.49D (final report to creditors); (f) Rule 4.108 (creditors’ meeting to receive liquidator’s resignation); (g) Rule 4.125 (final meeting – winding up by the court); (h) Rule 4.126 (final meeting – creditors’ voluntary liquidation). (3) The liquidator must— (a) in any account or summary of receipts and payments which is required to be included in the account or report, state the estimated value of the property distributed amongst the creditors of the company during the period to which the account or report relates, and (b) as a note to the account or summary of receipts and payments, provide details of the basis of the valuation.

Amendment to Rule 4.187

244

• (1) Rule 4.187 (liquidator’s notice of disclaimer) is amended as follows.

• (2) For paragraph (2) substitute—

(2) The notice of disclaimer must be authenticated and dated by the liquidator.

• (3) For paragraph (3), substitute—

(3A) As soon as reasonably practicable after authenticating the notice of disclaimer, the liquidator must— (a) send a copy of the notice to the registrar of companies; and (b) in any case where the disclaimer is of registered land as defined in section 132(1) of the Land Registration Act 2002[^f00021], send a copy of the notice to the Chief Land Registrar.

• (4) In paragraph (4) for “which is endorsed on it, and upon the copy, in accordance with this Rule” substitute “on which the liquidator authenticated it”.

Amendment to Rule 4.188

245

• (1) Rule 4.188 (communication of disclaimer to persons interested) is amended as follows.

• (2) For paragraph (1), substitute—

(1) Within 7 business days after the date of the notice of disclaimer, the liquidator shall send or give copies of the notice to the persons mentioned in paragraphs (2) to (4).

Amendments to Rule 4.189

246

• (1) Rule 4.189 (additional notices) is amended as follows.

• (2) For “give” substitute “send or give copies of the”.

• (3) For “it” substitute “the disclaimer”.

Substitution of Rules 4.190 and 4.191

247

For Rules 4.190 (duty to keep court informed) and 4.191 (application to interested party under s 178(5)) substitute—

(4.190A) The liquidator must include in the liquidator’s records of the insolvency a record of— (a) the persons to whom that liquidator has sent or given copies of the notice of disclaimer under the two preceding Rules, showing their names and addresses, and the nature of their respective interests; (b) the dates on which the copies of the notice of disclaimer were sent or given to those persons; (c) the date on which, as required by Rule 4.187(3)(a), a copy of the notice of disclaimer was sent to the registrar of companies; and (d) (where applicable) the date on which, as required by Rule 4.187(3)(b), a copy of the notice was sent to the Chief Land Registrar. (4.191A) (1) The following applies where, in the case of any property, application is made to the liquidator by an interested party under section 178(5). (2) The application must be delivered to the liquidator— (a) personally; (b) by electronic means in accordance with Part 12A; or (c) by any other means of delivery which enables proof of receipt of the application by the liquidator to be provided, if requested.

Amendments to Rule 4.194

248

• (1) Rule 4.194 (application for exercise of court’s powers under s 181) is amended as follows.

• (2) In paragraph (3), for “in court an affidavit” substitute “a witness statement”.

• (3) In paragraph (4)—

• (a) for “7” substitute “5 business”;

• (b) for “affidavit under” substitute “witness statement required by”.

Amendment to Rule 4.203

249

• (1) Rule 4.203 is amended as follows.

• (2) In paragraph (2), for “7” substitute “5 business”.

Amendments to Rule 4.204

250

• (1) Rule 4.204 (application to court for leave to make a call) is amended as follows.

• (2) In paragraph (1)—

• (a) for “ex parte” substitute “without notice to any other party”; and

• (b) for “affidavit” substitute “witness statement”.

Amendment to Rules 4.206 and 4.207

251

• (1) Rules 4.206 (appointment and remuneration) and 4.207 (security) are amended as follows.

• (2) In—

• (a) the second sentence of Rule 4.206(1), and

• (b) Rule 4.207(3),

for “assets” substitute “business or property”.

Amendments to Rule 4.211

252

• (1) Rule 4.211 (order for public examination) is amended as follows.

• (2) In paragraph (2)(b)—

• (a) omit “by post”; and

• (b) after “known address” add “in accordance with Chapter 3 of Part 12A, (service of court documents), and, if so, by what means”.

• (3) In paragraph (3)—

• (a) for “by post” substitute “at a known address in accordance with Chapter 3 of Part 12A”; and

• (b) for “addition to, post” substitute “addition to, service in such manner”.

Amendments to Rule 4.212

253

• (1) Rule 4.212 (notice of hearing) is amended as follows.

• (2) In paragraph (2)(c), omit “or is identified in the company’s statement of affairs”.

• (3) After paragraph (3) insert—

(3A) In addition to the standard contents, the notice under paragraph (3) must state— (a) the purpose of the hearing; and (b) the venue for the hearing.

• (4) In paragraph (4)—

• (a) at the beginning insert “Where the court’s order relates to a person falling within section 133(1)(c),”;

• (b) for “7” substitute “5 business”.

Amendments to Rule 4.213

254

• (1) Rule 4.213 (order on request by creditors or contributories) is amended as follows.

• (2) In paragraph (2), after “company and” insert “a statement of”.

• (3) In paragraph (6), for “ex parte” substitute “without notice to any other party”.

Amendments to Rule 4.214

255

• (1) Rule 4.214 (witness unfit for examination) is amended as follows.

• (2) In the heading, for “Witness” substitute “Examinee”.

• (3) In paragraph (1), for “application in that behalf” substitute “an application being made to it under this Rule”.

• (4) In paragraph (3)(a), for “affidavit” substitute “witness statement”.

• (5) In paragraph (4), for “ex parte” substitute “without notice to any other party”.

Amendment to Rule 4.215

256

• (1) Rule 4.215 (procedure at hearing) is amended as follows.

• (2) In paragraph (4), for “affidavit” substitute “a statement of truth”.

Substitution of Rule 4.227

257

For Rule 4.227 (application for leave under s.216(3)) substitute—

(4.227A) (1) At least 14 days notice of any application for permission to act in any of the circumstances which would otherwise be prohibited by section 216(3) must be given by the applicant to the Secretary of State, who may— (a) appear at the hearing of the application; and (b) whether or not appearing at the hearing, make representations. (2) When considering an application for permission under section 216, the court may call on the liquidator, or any former liquidator, of the liquidating company for a report of the circumstances in which that company became insolvent and the extent (if any) of the applicant’s apparent responsibility for its doing so.

Amendment to Rule 4.228

258

• (1) Rule 4.228 (first excepted case (leave to act as director)) is amended as follows.

• (2) In paragraph (3), omit “, subject to compliance with sub-paragraph (a),”.

Amendment to Rule 4.229

259

• (1) Rule 4.229 (second excepted case (leave to act as a director)) is amended as follows.

• (2) In paragraph (1), after “7” insert “business”.

Amendment to Rule 4.231

260

• (1) Rule 4.231 (interpretation of creditor and notice to member State liquidator) is amended as follows.

• (2) In paragraph (3), omit “,4.77 (claim established by affidavit)”.

Amendments to Rule 5.1

261

• (1) Rule 5.1 (individual voluntary arrangements – introductory) is amended as follows.

• (2) In paragraph (1), for “7, 10, 11 and 12” substitute “7 and 10 to 14”.

• (3) In paragraph (4), for “and 12” substitute “to 14”.

Amendment to Rule 5.2

262

• (1) Rule 5.2 (preparation of proposal) is amended as follows.

• (2) After “section 256 or” insert “the debtor’s creditors under”.

Amendments to Rule 5.3

263

• (1) In Rule 5.3 (contents of proposal) is amended as follows.

• (2) In paragraph (2)—

• (a) in sub-paragraph (q), at the end omit “and”;

• (b) after sub-paragraph (r) add—

(s) within the 24 months preceding the date on which the proposal is delivered to the nominee, whether a proposal for an individual voluntary arrangement in respect of the debtor was submitted— (i) to a meeting of the debtor’s creditors for approval and if so, (aa) whether the proposal was approved and the arrangement completed, or (bb) whether the proposal was rejected or the arrangement was terminated and if so, in what respects it differs from the proposal in this Rule; (ii) to the court in connection with an application for an interim order under section 253 and if so, whether the interim order was made.

• (3) In paragraph (3)—

• (a) for “former’s” substitute “nominee’s”; and

• (b) after “section 256 or” insert “to the debtor’s creditors under”.

Amendments to Rule 5.5

264

• (1) Rule 5.5 (statement of affairs) is amended as follows.

• (2) In paragraph (1)—

• (a) for “within 7 days after his” substitute “at the same time as the”;

• (b) omit “or such longer time as the latter may allow,”;

• (c) for “his (the debtor’s)” substitute “the debtor’s”.

• (3) In paragraph (3)(f)—

• (a) after “report” insert “on the debtor’s proposal”; and

• (b) for “on the debtor’s proposal” substitute “or to the debtor’s creditors as the case may be”.

• (4) In paragraph (4) omit “to the court”.

• (5) For paragraph (5), substitute—

The statement must be verified by a statement of truth made by the debtor.

Amendments to Rule 5.6

265

• (1) Rule 5.6 (additional disclosure for assistance of nominee) is amended as follows.

• (2) In paragraph (1)—

• (a) after sub-paragraph (a) insert—

(aa) further and better particulars of any proposals of the kind, and within the period, referred to in Rule 5.3(2)(s) which have been submitted by the debtor;

• (b) in sub-paragraph (b)—

• (i) after “proposals” insert “other than those referred to in Rule 5.3(2)(s)”;

• (ii) for “him” substitute “the debtor at any time”;

• (iii) after “the Act;” insert “and”.

• (3) In paragraph (3) for “him” to “records” substitute “the nominee such access to the debtor’s accounts and records as the nominee may require”.

Amendments to Rule 5.7

266

• (1) Rule 5.7 (application for interim order) is amended as follows.

• (2) In paragraph (1)—

• (a) for “an affidavit” substitute “a witness statement”;

• (b) in sub-paragraph (d), for “the affidavit” substitute “the witness statement”; and

• (c) in sub-paragraph (f)—

• (i) for “that” substitute “whether”;

• (ii) omit “not”;

• (iii) at the end add “and, if so, when and with what result”.

• (3) In paragraph (2)—

• (a) for “exhibited” substitute “attached”; and

• (b) for “affidavit” substitute “witness statement”.

• (4) In paragraph (3), for “affidavit” substitute “the witness statement”.

• (5) In paragraph (4), after “2” insert “business”.

Amendment to Rule 5.8

267

• (1) Rule 5.8 (court in which application to be made) is amended as follows.

• (2) In paragraph (1), for “6.40” substitute “6.40A”.

Amendments to Rule 5.11

268

• (1) Rule 5.11 (nominee’s report on the proposal) is amended as follows.

• (2) In paragraph (1), after “2” insert “business”.

• (3) Omit paragraph (5).

Amendments to Rule 5.12

269

• (1) Rule 5.12 (replacement of nominee) is amended as follows.

• (2) In paragraph (1), for “7” substitute “5 business”.

• (3) In paragraph (2) for “his consent to act” substitute—

that the replacement nominee— (a) consents to act; and (b) is qualified to act as an insolvency practitioner in relation to the debtor or is an authorised person in relation to the debtor.

Substitution of Rule 5.14

270

For rule 5.14 (nominee’s report to the court) substitute—

(5.14A) (1) This rule applies where the nominee has received the document and statement mentioned in section 256A(2)[^f00022]. (2) The nominee must within 14 days (or such longer period as the court may allow)— (a) if the nominee has the opinions in section 256A(3)(a) and (b), attach to the report the nominee’s comments on the debtor’s proposal and comply with paragraph (3); or (b) if the nominee does not have the opinions in section 256A(3)(a) and (b), comply with paragraph (5). (3) Where paragraph (2)(a) applies, the nominee must deliver the documents in paragraph (4) to— (a) each of the debtor’s creditors of whose address the nominee is aware; (b) where the debtor is an undischarged bankrupt, the official receiver and (if any) the trustee; and (c) any person who has presented a bankruptcy petition against the debtor. (4) The documents are— (a) a copy of the report; (b) a copy of the nominee’s comments attached to the report; (c) a copy of the debtor’s proposal (with amendments, if any, authorised under Rule 5.3(3)); (d) a copy or summary of any statement of affairs provided by the debtor; and (e) a copy of the notice referred to in Rule 5.4(3), and (f) a statement that no application for an interim order under section 253 is to be made. (5) Where paragraph (2)(b) applies the nominee must— (a) deliver a copy of the report to each of the debtor’s creditors of whose address the nominee is aware; and (b) give the reasons for that opinion to the debtor. (5.14B) (1) Subject to paragraph (2), where a report has been made under section 256A any application relating to a voluntary arrangement or a proposal for a voluntary arrangement must be filed in the court in which the debtor would be entitled to present the debtor’s petition in bankruptcy under Rule 6.40A. (2) Where the debtor is an undischarged bankrupt, the appropriate court is the court having the conduct of the debtor’s bankruptcy and any application must be filed with the bankruptcy proceedings. (3) The report must contain sufficient information to identify the appropriate court in which to file an application relating to a voluntary arrangement or to a proposal for a voluntary arrangement. (4) Where an application is made to the court in relation to any matter relating to a voluntary arrangement or a proposal for a voluntary arrangement, in addition to the documents in support of the application, the applicant must file in court such other documents required by this Part as the applicant considers may assist the court in determining the application. (5) Where the debtor intends to apply to the court under section 256A(4)(a) or (b) for the nominee to be replaced, the debtor must give to the nominee at least 5 business days’ notice of the application. (6) Where the nominee intends to apply to the court under section 256A(4)(b) to be replaced as nominee, the nominee must give to the debtor at least 5 business days’ notice of the application. (7) The court must not appoint a replacement nominee unless a statement by the replacement nominee indicating consent to act is filed in court.

Amendments to Rule 5.17

271

• (1) Rule 5.17 (summoning of creditors’ meeting) is amended as follows.

• (2) In paragraph (1)(a)—

• (a) omit “not less than 14 days and”; and

• (b) for “nominee’s report” to “Rule 5.14” substitute “nominee received the document and statement in section 256A(2)”;

• (3) In paragraph (2), for “specified in” to “otherwise aware” substitute “of the debtor of whose address the nominee is aware”;

• (4) For paragraph (3) substitute—

(3) Each notice sent under this rule must specify— (a) in a case where an interim order has not been obtained, the court to which application must be made under Rule 5.14B(1) or (2) as the case may be; or (b) in a case where an interim order is in force, the court in which the nominee’s report on the debtor’s proposal has been filed under Rule 5.8; and must state the effect of Rule 5.23(2) to (4) (requisite majorities). (3A) Unless they have been sent under Rule 5.14A, the following documents must be sent with every notice under paragraph (3)— (a) a copy of the proposal; (b) a copy of the statement of affairs or, if the nominee thinks fit, a summary of it (the summary to include a list of the creditors and the amounts of their debts); and (c) the nominee’s report with the comments on the proposal annexed to it.

Amendment to Rule 5.22

272

• (1) Rule 5.22 (procedure for admission of creditors’ claims for voting purposes) is amended as follows.

• (2) In paragraph (6) for the words from “the report” to the end substitute—

(a) where the creditors’ meeting was summoned under section 257 pursuant to a report to the debtor’s creditors under section 256A(3), the notice of the result of the meeting required by section 259(1)(a) has been given; or (b) where the creditors’ meeting was summoned under section 257 pursuant to a report to a court under section 256(1)(aa)[^f00023], the report required by section 259(1)(b) is made to the court.

Amendment to Rule 5.23

273

• (1) Rule 5.23 (requisite majorities) 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.

Amendment to Rule 5.24

274

• (1) Rule 5.24 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 5.25

275

• (1) Rule 5.25 (resolutions to follow approval) is amended as follows.

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

Amendments to Rule 5.27

276

• (1) Rule 5.27 (report of creditors’ meeting) is amended as follows.

• (2) In paragraph (2)(e) after “court” insert “or the debtor’s creditors as the case may be”.

• (3) In paragraph (3)—

• (a) at the beginning insert, “Where the creditors’ meeting was summoned under section 257 pursuant to a report to a court under section 256(1)(aa),”;

• (b) after “4” insert “business”.

• (4) In paragraph (4)—

• (a) for “whom” where it appears second substitute “whose address”; and

• (b) for the second sentence substitute—

(4A) The notice must be sent— (a) where the creditors’ meeting was summoned under section 257 pursuant to a report to a court under section 256(1)(aa), as soon as reasonably practicable after a copy of the chairman’s report is filed in court; (b) where the creditors’ meeting was summoned under section 257 pursuant to a report to creditors under section 256A(3), within 4 business days of the meeting being held.

Amendment to Rule 5.29

277

• (1) Rule 5.29 (reports to Secretary of State) is amended as follows.

• (2) For paragraph (1) substitute—

(1) As soon as reasonably practicable, and in any event, within the period of 14 days after a report that the creditors’ meeting has approved the voluntary arrangement has been filed in court or sent to the creditors as the case may be, the chairman of the creditors’ meeting must send to the Secretary of State the following information— (a) the name and address of the debtor; (b) the date on which the arrangement was approved by the creditors; (c) the name and address of the supervisor; (d) the debtor’s gender; (e) the debtor’s date of birth; and (f) any name by which the debtor was or is known, not being the name in which the debtor has entered into the voluntary arrangement.

Amendments to Rule 5.30

278

• (1) Rule 5.30 (revocation or suspension of the arrangement) is amended as follows.

• (2) In paragraphs (4)(b) and (5), for “7” wherever it appears substitute “5 business”.

Substitution of Rule 5.31

279

For rule 5.31 (supervisor’s accounts and reports) substitute—

(5.31A) (1) Paragraph (2) applies where the voluntary arrangement authorises or requires the supervisor— (a) to carry on the business of the debtor or trade on behalf of or in the name of the debtor; or (b) to realise assets of the debtor or (in a case where the debtor is an undischarged bankrupt) belonging to the estate; or (c) otherwise to administer or dispose of any funds of the debtor or the estate. (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 debtor, and (b) all those of the debtor’s creditors who are bound by the voluntary arrangement and of whose address the supervisor is aware. (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 5.34 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 sent pursuant to paragraph (2) must include or be accompanied by— (a) an abstract of receipts and payments required to be recorded by virtue of paragraph (2); or (b) where there have been no such receipts and payments, a statement to that effect.

Amendment to Rule 5.32

280

• (1) Rule 5.32 (production of accounts and records to Secretary of State) is amended as follows.

• (2) In paragraph (1)(b), for “5.31” substitute “5.31A”.

Amendments to Rule 5.34

281

• (1) Rule 5.34 (completion or termination of the agreement) is amended as follows.

• (2) For paragraph (3) substitute—

(3) The Supervisor must not vacate office until paragraph (3A) has been complied with. (3A) Within the period in paragraph (1), a copy of the notice under paragraph (1), together with a copy of the report under paragraph (2) must be— (a) sent by the supervisor to the Secretary of State; and (b) where the creditors’ meeting was summoned under section 257 pursuant to a report to a court under section 256(1)(aa), filed with the court by the supervisor.

• (3) In paragraph (4), omit “and (3)”.

Amendment to Rule 5.37

282

• (1) Rule 5.37 (contents of proposal) is amended as follows.

• (2) In paragraph (2), in the words after the sub-paragraphs, omit “and dated”.

Amendments to Rule 5.39

283

• (1) Rule 5.39 (arrangements for approval of fast-track voluntary arrangement) is amended as follows.

• (2) In paragraph (1)(b)(i)—

• (a) omit “in excess”;

• (b) after “three-quarters” insert “or more”; and

• (c) for “report to the court” substitute “notify the Secretary of State”.

• (3) In paragraph (1)(b)(ii)(aa), for “reports to the court” substitute “notifies the Secretary of State”.

Amendments to Rule 5.40

284

• (1) Rule 5.40 (approval by creditors) is amended as follows.

• (2) For paragraph (2) substitute—

(2) That notice may be sent by a representative of a creditor if it is accompanied by a written authority for that representation authenticated by the creditor.

• (3) Omit paragraph (3).

Amendments to Rule 5.42

285

• (1) Rule 5.42 (procedure for admission of creditors’ claims for voting purposes) is amended as follows.

• (2) In paragraph (4)—

• (a) for “report” substitute “official receiver is”; and

• (b) for “is made to the court” substitute “to notify the Secretary of State”.

Amendment to Rule 5.43

286

• (1) Rule 5.43 (requisite majorities) is amended as follows.

• (2) In paragraph (1), for “a majority in excess of three-quarters” substitute “three-quarters or more”.

Amendments to Rule 5.45

287

• (1) Rule 5.45 (notice of appointment as supervisor etc.) is amended as follows.

• (2) In paragraph (1) for “whom he” substitute “whose address the official receiver”.

• (3) In paragraph (2), for “shall” substitute “must, as soon as reasonably practicable after doing so,”.

Amendment to Rule 5.46

288

• (1) Rule 5.46 (revocation of the fast-track voluntary arrangement) is amended as follows.

• (2) In paragraph (4), for “7” substitute “5 business”.

Substitution of Rule 5.47

289

For Rule 5.47 (supervisor’s accounts and reports) substitute—

(5.47A) (1) 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. (2) Subject to paragraph (3), 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 debtor; (b) all those of the debtor’s creditors who are bound by the voluntary arrangement of whose address the supervisor is aware; (3) The supervisor is released from an obligation to send a report under paragraph (2), if an obligation to send a final report under Rule 5.50 arises in the period of 2 months mentioned in paragraph (2).

Amendment to Rule 5.50

290

• (1) Rule 5.50 (completion or termination of fast-track voluntary arrangement) is amended as follows.

• (2) In paragraph (1), for “(or as” substitute “or (as”.

Amendments to Rule 5.52

291

• (1) Rule 5.52 (application by bankrupt to court) is amended as follows.

• (2) In paragraph (2), for “an affidavit” substitute “a witness statement”.

• (3) In paragraph (3), for “affidavit” substitute “witness statement”.

• (4) In paragraph (4)—

• (a) for “affidavit” substitute “witness statement”;

• (b) for “7” substitute “5 business”.

Amendments to Rule 5.55

292

• (1) Rule 5.55 (application by official receiver to court) is amended as follows.

• (2) For paragraph (2) substitute—

(2) The official receiver may not make an application under section 261(2)(b) before the expiry of the period of 42 days beginning with the day on which— (a) where the creditors’ meeting was summoned under section 257 pursuant to a report to a court under section 256(1)(aa), the nominee filed the report of the creditors’ meeting with the court; or (b) where the creditors’ meeting was summoned under section 257 pursuant to a report to the debtor’s creditors under section 256A(3), the result of the creditors’ meeting was notified to the creditors.

• (3) In paragraph (5), for “7” substitute “5 business”.

Amendment to Rule 5.56

293

• (1) Rule 5.56 (notice to creditors) is amended as follows.

• (2) In paragraph (1) for “whom he” substitute “whose address the official receiver”.

Amendment to Rule 5.58

294

• (1) Rule 5.58 (application to court) is amended as follows.

• (2) In paragraph (6), for “7” substitute “5 business”.

Amendment to Rule 5.60

295

• (1) Rule 5.60 (other matters arising on annulments) is amended as follows.

• (2) After paragraph (3) insert—

(3A) In addition to the standard contents, the notice under paragraph (3) must state— (a) the name of the former bankrupt; (b) the date on which the bankruptcy order was made; (c) that the bankruptcy order has been annulled; (d) the date of the annulling order; and (e) the grounds of the annulment.

Amendments to Rule 5.62

296

• (1) Rule 5.62 (application for conversion of voluntary arrangement into bankruptcy) is amended as follows.

• (2) In paragraph (1)—

• (a) for “an affidavit” substitute “a witness statement”; and

• (b) omit “and sworn,”.

• (3) In paragraph (2), for “affidavit” substitute “witness statement”.

Amendments to Rule 5.63

297

• (1) Rule 5.63 (contents of affidavit) is amended as follows.

• (2) In the heading, for “affidavit” substitute “witness statement”.

• (3) In paragraph (1)—

• (a) for “affidavit” substitute “witness statement”; and

• (b) in sub-paragraph (b) for “deponent’s belief” substitute “belief of the person making the witness statement”.

• (4) In paragraph (2)—

• (a) for “An affidavit” substitute “A witness statement”; and

• (b) for “sworn” substitute “made”.

New Chapters in Part 5

298

After Rule 5.65 add—

(5.66) must, on request in writing by any person mentioned in paragraph (2), supply free of charge to that person a statement complying with paragraph (3). (1) A person (“the relevant person”) who has acted or is acting as— (a) a nominee in respect of a proposed voluntary arrangement, or (b) a supervisor in respect of a voluntary arrangement (2) The persons mentioned in this paragraph are— (a) the debtor; and (b) where the proposal has been approved, any creditor of the debtor in respect of the arrangement. (3) The statement referred to in paragraph (1)— (a) must cover the period beginning with the date of the appointment of the relevant person as nominee or supervisor, as the case may be, and ending— (i) with the date next before the date of making the request on which the relevant person has completed any period as nominee or supervisor, or both, which is a multiple of 6 months, or (ii) where the relevant person has ceased to act as nominee or supervisor, the date upon which the person so ceased; and (b) must comprise the following details— (i) the total number of hours spent on the voluntary arrangement by the relevant person whether as nominee or supervisor, or both, and any staff assigned to the voluntary arrangement during that period; (ii) for each grade of individual so engaged, the average hourly rate at which any work carried out by individuals in that grade is charged; and (iii) the number of hours spent by each grade of staff during that period. (4) No request pursuant to this Rule may be made where more than 2 years has elapsed since the relevant person ceased to act in any capacity in relation to the proposal or any voluntary arrangement arising out of the approval of the proposal. (5) Any statement required to be provided to any person under this Rule must be supplied within 28 days of the date of the receipt of the request by the person required to supply it. (5.67) (1) The provisions of this Rule apply in any case where disclosure or continuing disclosure to other persons (whether to the public generally or to specific persons) of the current address or whereabouts of a debtor might reasonably be expected to lead to violence against the debtor or against a person who normally resides with the debtor as a member of the debtor’s family. (2) For the purposes of this Rule— - “current address” means, in relation to any debtor, the address of the debtor’s current place of residence and any address at which the debtor currently carries on business; - “debtor” means a debtor who has entered into an individual voluntary arrangement. (3) The court may, on the application of the debtor, the supervisor, the official receiver (whether acting as a supervisor or otherwise) or the Secretary of State, order that— (a) details of the debtor’s current address be removed from any part of the court file of the proceedings in relation to the debtor which is open to inspection and be kept on a separate file not open to inspection; (b) the details in respect of the debtor to be entered onto the individual insolvency register under Rule 6A.2A in respect of an individual voluntary arrangement must not include details of the debtor’s current address; and (c) that any notice published by the Secretary of State of the making of any order permitting vacation of the registration of a bankruptcy petition referred to in Rule 5.60, must not include details of the bankrupt’s address. (4) Where the court makes an order under paragraph (3), it may further order that the details in respect of the debtor to be entered onto the register referred to in paragraph (3) must instead include such other details of the debtor’s addresses or whereabouts as the court thinks just, including details of any address at which the debtor has previously resided or carried on business. (5) In any case where an application is made in respect of a debtor under or by virtue of this Rule, the application must be accompanied by a witness statement referring to this Rule and containing sufficient evidence to satisfy the court that paragraph (1) of this Rule applies to or in respect of that debtor. (5.68) The court, on the application of the nominee, the debtor or any person appearing to it to have an interest, may direct that specified information may be omitted from any statement of affairs required to be sent to the creditors where the disclosure of such information would be likely to prejudice the conduct of the voluntary arrangement or might reasonably be expected to lead to violence against any person.

Amendments to Rule 5A.2

299

• (1) Rule 5A.2 (excluded debts) is amended as follows.

• (2) In the definition of “excluded debt”—

• (a) at the end of sub-paragraph (b), omit “and”;

• (b) after sub-paragraph (c), add—

; and (d) any debt which consists in a liability to pay damages for negligence, nuisance or breach of a statutory, contractual or other duty, or to pay damages by virtue of Part 1 of the Consumer Protection Act 1987[^f00024], being in either case damages in respect of the death of or personal injury (including any disease or other impairment of physical or mental condition) to any person.

Amendment to Rule 5A.18

300

• (1) Rule 5A.18 (persons at risk of violence – debt relief restrictions orders and debt relief restrictions undertakings) is amended as follows.

• (2) In paragraph (6), for “an affidavit” substitute “a witness statement”.

Amendments to Rule 5A.24

301

• (1) Rule 5A.24 (application for leave under Company Directors Disqualification Act 1986) is amended as follows.

• (2) In paragraph (1), for “an affidavit” substitute “a witness statement”.

• (3) In each of paragraphs (2), (3) and (4), for “affidavit” substitute “witness statement”.

• (4) In paragraph (4), for “7” substitute “5 business”.

Amendments to Rule 5A.25

302

• (1) Rule 5A.25 (application for leave under Company Directors Disqualification Act 1986 – report of official receiver) is amended as follows.

• (2) In paragraph (1), for “affidavit” substitute “witness statement”.

• (3) In paragraph (3), for “7” substitute “5 business”.

• (4) In paragraph (4), after “4” insert “business”.

Amendment to Rule 6.3

303

• (1) Rule 6.3 (requirements as to service) is amended as follows.

• (2) In paragraph (1), for “affidavit” substitute “a certificate of service”.

Amendments to Rule 6.4

304

• (1) Rule 6.4 (application to set aside statutory demand) is amended as follows.

• (2) For paragraph (2) substitute—

(2) Subject to paragraph (2A), an application to the court under this Rule must be made to the court to which the debtor would in accordance with Rule 6.40A present the petition for the debtor’s bankruptcy. (2A) A debtor may make an application to the High Court where the High Court is not the court to which the debtor would in accordance with Rule 6.40A present the petition for the debtor’s bankruptcy if— (a) the creditor issuing the statutory demand is a Minister of the Crown or a Government Department; (b) the debt in respect of which the statutory demand is made, or a part of it equal to or exceeding the bankruptcy level (within the meaning of section 267), is the subject of a judgment or order of any court; and (c) the statutory demand— (i) specifies the date of the judgment or order and the court in which it was obtained; and (ii) indicates the creditor’s intention to present a bankruptcy petition against the debtor in the High Court.

• (3) In paragraph (4)—

• (a) for “an affidavit” substitute “a witness statement”; and

• (b) omit “The affidavit shall have exhibited to it a copy of the statutory demand.”

• (4) After paragraph (4) add—

(5) The witness statement must have attached to it a copy of the statutory demand.

Amendment to Rule 6.5

305

• (1) Rule 6.5 (hearing of application to set aside) is amended as follows.

• (2) In paragraph (2), for “7” substitute “5 business”.

Substitution of Rule 6.9

306

For Rule 6.9 (court in which petition to be presented) substitute—

(6.9A) (1) If the debtor is resident in England and Wales, the petition must, in the following cases, be presented to the High Court— (a) if the petition is presented by a Minister of the Crown or a Government Department, and either— (i) in any statutory demand on which the petition is based the creditor has indicated the intention to present a bankruptcy petition to that Court, or (ii) the petition is presented under section 268(1)(b); (b) if, for the greater part of the 6 months immediately preceding the presentation of the petition, the debtor— (i) has carried on a business in the London insolvency district; or (ii) has not carried on a business in England and Wales but has resided in the London insolvency district; or (c) if the petitioner is unable to ascertain the debtor’s residence or place of business within England and Wales. (2) Where the debtor is resident in England and Wales and paragraph (1) does not apply, the petition must be presented to the debtor’s own county court if the debtor— (a) has carried on a business in England and Wales other than in the London insolvency district, or (b) has not carried on a business in England and Wales and has resided outside the London insolvency district. (3) In this Rule the debtor’s own county court is— (a) where the debtor has carried on a business within the 6 months immediately preceding the presentation of the petition, the county court for the insolvency district where for the greater part of that period of 6 months— (i) the debtor carried on the business, or (ii) the principal place of business was located, if the business was carried on in more than one insolvency district; or (b) where the debtor has not carried on a business in the 6 months immediately preceding the presentation of the petition, the county court for the insolvency district where the debtor resided for the greater part of that 6 month period. (4) If the debtor is not resident in England and Wales but was resident or carried on business in England and Wales within the 6 months immediately preceding the presentation of the petition, the petition— (a) must be presented to the High Court if the debtor— (i) carried on a business in the London insolvency district for a longer period in those 6 months than in any other insolvency district, or (ii) did not carry on a business in England and Wales but resided in the London insolvency district for a longer period in those 6 months than in any other insolvency district; and (b) in any other case, may be presented either to the debtor’s own county court or to the High Court. (5) The petition must be presented to the High Court if the debtor is not resident in England and Wales and— (a) has not resided or carried on business in England and Wales within the 6 months immediately preceding the presentation of the petition, or (b) the petitioner is unable to ascertain the debtor’s residence or place of business. (6) Notwithstanding any other provision of this Rule, where there is in force for the debtor a voluntary arrangement under Part 8 of the Act, the petition must be presented to the court to which the nominee’s report under section 256 was submitted. (7) The petition must contain sufficient information to establish that it is presented in the appropriate court.

Amendments to Rule 6.10

307

• (1) Rule 6.10 (procedure for presentation and filing) is amended as follows.

• (2) In paragraph (1), for “affidavit” substitute “a statement of truth”.

• (3) In paragraph (3)—

• (a) in sub-paragraph (a), at the end add “and”; and

• (b) omit sub-paragraph (b).

• (4) In paragraph (6)—

• (a) after “2” insert “business”;

• (b) in sub-paragraph (a), for “10” substitute “7 business”.

Amendments to Rule 6.11

308

• (1) Rule 6.11 (proof of service of statutory demand) is amended as follows.

• (2) In paragraph (1), for “an affidavit or affidavits” substitute “a certificate or certificates”.

• (3) In paragraph (2)—

• (a) for “affidavit must” substitute “certificate must be verified by a statement of truth and”; and

• (b) for “exhibited” substitute “attached”.

• (4) In paragraph (3), for “affidavit must be made” substitute “certificate must be authenticated”.

• (5) In paragraph (4)—

• (a) for “affidavit must be made” substitute “certificate must be authenticated”; and

• (b) for “exhibited to the affidavit” substitute “exhibited to the certificate”.

• (6) In paragraph (5)—

• (a) for “affidavit or affidavits must be made” substitute “certificate or certificates must be authenticated”; and

• (b) in sub-paragraph (c) for “making the affidavit” substitute “authenticating the certificate”.

• (7) In paragraph (7), for “affidavit” substitute “certificate”.

• (8) In paragraph (8)—

• (a) for “affidavit must be made” substitute “certificate must be authenticated”;

• (b) for “specified in the affidavit” substitute “specified in the certificate”;

• (c) for “exhibited to the affidavit” substitute “exhibited to the certificate”; and

• (d) for “affidavit shall contain or exhibit” substitute “certificate must contain or attach”.

Amendments to Rule 6.12

309

• (1) Rule 6.12 (verification of petition) is amended as follows.

• (2) In paragraph (1), for “an affidavit that the statements in the petition are true, or are true to the best of the deponent’s knowledge, information and belief” substitute “a statement of truth”.

• (3) For paragraph (3) substitute—

(3A) A statement of truth which is not contained in or endorsed upon the petition which it verifies must be sufficient to identify the petition and must specify— (a) the name of the debtor, (b) the name of the petitioner, and (c) the court in which the petition is to be presented.

• (4) In paragraph (4)—

• (a) for “affidavit shall be made” substitute “statement of truth must be authenticated”; and

• (b) in sub-paragraph (c) for “make the affidavit” substitute “authenticate the statement of truth”.

• (5) In paragraph (5)—

• (a) for “maker of the affidavit” substitute “person authenticating the statement of truth”;

• (b) for “affidavit” substitute “statement of truth”;

• (c) in sub-paragraph (a) for “makes” substitute “authenticates”; and

• (d) in sub-paragraph (b) for “sworn to in the affidavit” substitute “verified in the statement of truth”.

• (6) Omit paragraph (6).

• (7) In paragraph (7), for “affidavit must also state” substitute “petition must include a statement explaining”.

Amendments to Rule 6.14

310

• (1) Rule 6.14 (service of petition) is amended as follows.

• (2) In paragraph (2), for “affidavit” substitute “a witness statement”.

• (3) After paragraph (5) add—

(6) A bankruptcy petition may, with the permission of the court, be served outside England and Wales in such manner as the court may direct.

Substitution of Rule 6.15

311

For Rule 6.15 (proof of service) substitute—

(6.15A) (1) Service of the petition must be proved by a certificate of service. (2) The certificate of service must be sufficient to identify the petition served and must specify— (a) the name of the debtor, (b) the name of the petitioner, (c) the court in which the petition was filed and the court reference number, (d) the date of the petition, (e) whether the copy served was a sealed copy, (f) the date on which service was effected, and (g) the manner in which service was effected. (3) Where substituted service has been ordered, the certificate of service must have attached to it a sealed copy of the order. (4) The certificate of service must be filed in court as soon as reasonably practicable after service, and in any event not less than 5 business days before the hearing of the petition.

Amendment to Rule 6.21

312

• (1) Rule 6.21 (petition opposed by debtor) is amended as follows.

• (2) For “7” substitute “5 business”.

Amendment to Rule 6.22

313

• (1) Rule 6.22 (amendment of petition) is amended as follows.

• (2) Omit “by the omission of any creditor or any debt”.

Amendment to Rule 6.31

314

• (1) Rule 6.31 (change of carriage petition) is amended as follows.

• (2) In paragraph (5), omit “(whether by affidavit or otherwise)”.

Amendments to Rule 6.32

315

• (1) Rule 6.32 (petitioner seeking dismissal or leave to withdraw) is amended as follows.

• (2) For paragraph (1) substitute—

(1) Where the petitioner applies to the court for the petition to be dismissed, or for permission to withdraw it, the petitioner must, in any case where— (a) a creditor of the debtor has given notice under Rule 6.23 of intention to appear at the hearing of the petition, or (b) the court so orders, file with the court a witness statement specifying the grounds of the application and the circumstances in which it is made.

• (3) In paragraph (2), for “affidavit must” substitute “witness statement must also”.

Amendment to Rule 6.33

316

• (1) Rule 6.33 (settlement and content of bankruptcy order) is amended as follows.

• (2) For paragraph (2)(b) substitute—

(b) contain a notice referring to the bankrupt’s duties in relation to the official receiver under section 291, and in particular to the bankrupt’s duty to give the official receiver such inventory of the bankrupt’s estate and such other information, and to attend on the official receiver at such times, as the official receiver may reasonably require.

Amendments to Rule 6.34

317

• (1) Rule 6.34 (action to follow making of order) is amended as follows.

• (2) After paragraph (2) insert—

(2A) In addition to the standard contents, the notice to be gazetted and any notice to be advertised under paragraph (2) must state— (a) that a bankruptcy order has been made against the bankrupt; (b) the date and time of making of the bankruptcy order; (c) the name and address of the petitioning creditor; and (d) the date of presentation of the petition.

• (3) In paragraph (3), for “an affidavit” substitute “a witness statement”.

Amendment to Rule 6.35

318

• (1) Rule 6.35 (amendment of title of proceedings) is amended as follows.

• (2) After paragraph (3) add—

(4) In addition to the standard contents, the notice under paragraph (3) must— (a) state that an amendment to the full title of the proceedings has been made; and (b) specify the amendment.

Substitution of Rule 6.40

319

For Rule 6.40 (court in which petition to be filed) substitute—

(6.40A) (1) If the debtor is resident in England and Wales, the petition— (a) must be presented to the High Court if, for the greater part of the 6 months immediately preceding the presentation of the petition, the debtor— (i) has carried on a business in the London insolvency district; or (ii) has not carried on a business in England and Wales but has resided in the London insolvency district; or (b) must be presented to the debtor’s own county court (unless paragraph (5) applies) if the debtor— (i) has carried on a business in England and Wales other than in the London insolvency district, or (ii) has not carried on a business in England and Wales and has resided outside the London insolvency district. (2) If the debtor is not resident in England and Wales but was resident or carried on business in England and Wales within the 6 months immediately preceding the presentation of the petition, the petition— (a) must be presented to the High Court if the debtor— (i) carried on a business in the London insolvency district for a longer period in those 6 months than in any other insolvency district, or (ii) did not carry on a business in England and Wales but resided in the London insolvency district for a longer period in those 6 months than in any other insolvency district; and (b) in any other case, may be presented either to the debtor’s own county court or to the High Court. (3) In a case not falling within either paragraph (1) or (2), the petition must be presented to the High Court. (4) For the purposes of this Rule, what constitutes the debtor’s own county court is to be determined in accordance with Rule 6.9A(3). (5) Where, for whatever reason, it is not possible for the petition to be presented to the debtor’s own county court, the debtor may, with a view to expediting the presentation of the petition, present the petition— (a) where Rule 6.9A(3)(a) applies, to— (i) the court for the insolvency district in which the debtor resides, or (ii) whichever court is specified by Schedule 2 to these Rules as being the nearest full time court in relation to— (aa) the court in Rule 6.9A(3)(a), or (bb) where the court in paragraph (i) is a county court, that court; or (b) where Rule 6.9A(3)(b) applies, whichever court is specified by Schedule 2 to these Rules as being the nearest full time court in relation to the court in that paragraph. (6) Notwithstanding any other provision of this Rule, where there is in force for the debtor a voluntary arrangement under Part 8 of the Act, the petition must be presented to the court to which the nominee’s report under section 256 was submitted. (7) The petition must contain sufficient information to establish that it is presented to the appropriate court.

Amendment to Rule 6.41

320

• (1) Rule 6.41 (statement of affairs) is amended as follows.

• (2) In paragraph (1), for “affidavit” substitute “a statement of truth”.

Amendments to Rule 6.42

321

• (1) Rule 6.42 (procedure for presentation and filing) is amended as follows.

• (2) Omit paragraph (5).

• (3) In paragraph (7)—

• (a) after “2” insert “business”;

• (b) in sub-paragraph (a), for “10” substitute “7 business”.

Amendment to Rule 6.44

322

• (1) Rule 6.44 (report of insolvency practitioner) is amended as follows.

• (2) In paragraph (2), after “3” insert “business”.

Amendment to Rule 6.45

323

• (1) Rule 6.45 (settlement and content of bankruptcy order) is amended as follows.

• (2) For paragraph (2)(b) substitute—

(b) contain a notice referring to the bankrupt’s duties in relation to the official receiver under section 291, and in particular to the bankrupt’s duty to give the official receiver such inventory of the bankrupt’s estate and such other information, and attend on the official receiver at such times, as the official receiver may reasonably require.

Amendments to Rule 6.46

324

• (1) Rule 6.46 (action to follow making of order) is amended as follows.

• (2) In paragraph (1), for “shall” where it appears second substitute “must (unless the official receiver is satisfied that the bankrupt has already received a copy of the order)”.

• (3) After paragraph (2) insert—

(2A) In addition to the standard contents, the notice to be gazetted under paragraph (2)(b) and any notice to be advertised under paragraph (2)(c) must state— (a) that a bankruptcy order has been made against the bankrupt; (b) the date and time of making of the bankruptcy order; (c) that the bankruptcy order was made on the debtor’s own petition; and (d) the date of presentation of the petition.

• (4) In paragraph (3), omit the second sentence.

• (5) After paragraph (3), add—

(3A) An application under this paragraph must be supported by a witness statement stating the grounds on which it is made.

Amendment to Rule 6.47

325

• (1) Rule 6.47 (amendment of title of proceedings) is amended as follows.

• (2) After paragraph (3) add—