The Insolvency (Scotland) Amendment Rules 2010

Schedule 1 (introduced by Rule 3) contains 118 paragraphs of detailed amendments to the principal Rules. Apart from minor drafting and technical changes to the principal Rules, the following are the principal substantive changes made by these amendments:

• Notices published in the Edinburgh Gazette and elsewhere will require to contain standard content (as defined in the new definition inserted into Rule 0.2(1) (paragraphs 1 and 113 of Schedule 1);

• Provision is made to allow for electronic delivery of notices and other documents between those involved in a CVA or administration, and for nominees, supervisors and administrators to make documents available to interested parties via a website in prescribed circumstances (paragraph 3 as regards CVAs, and new Rules 2.25B to 2.25E inserted by paragraph 68 as regards administrations);

• Rules are made in relation to authentication of both hard copy and electronic documents (paragraph 2);

• Provision is made in relation to meetings to be held under section 246A of the Insolvency Act 1986. That section allows the convener of a meeting to hold it in such a way that those attending may do so using any form of technology which permits them to be heard and to vote at the meeting rather than attend in person or by proxy. Provision is made in relation to individuals who have taken all steps necessary to attend a meeting using the arrangements put in place but are unable to do so (new Rules 1.16C – 1.16E inserted by paragraph 27 as regards CVAs and paragraph 83 as regards administrations). In addition, creditors may request that a place be set for a meeting to be held under section 246A of the Insolvency Act 1986 (paragraph 22 as regards CVAs and new Rule 2.26B inserted by paragraph 70 as regards administrations);

• The Rules for the constitution, establishment and meetings of the creditors’ committee in an administration are set out in full in new Rules 2.36 – 2.36R (inserted by paragraph 84) which include, at new Rules 2.36D and 2.36E, provision relating to meetings that allow a person to be heard and vote at the meeting though not physically present;

• Provision is made to enable administrators to recover pre-administration costs (that is, the costs incurred by the administrator or another person qualified to act as an insolvency practitioner before the company entered administration but with a view to its doing so) subject to the approval of creditors (paragraphs 64 and 89);

• The court is given power to direct that information be omitted from certain statements to be sent to creditors where disclosure of the information might reasonably be expected to lead to violence against any person (paragraph 55 as regards CVAs and paragraph 58 and new Rule 2.25A inserted by paragraph 68 as regards administrations);

• A procedure by which a creditor may obtain an adjudication as to entitlement to vote at any meeting of creditors in an administration and a dividend is set out by new Rule 2.26C (paragraph 71); and

• Provision is made to enable the electronic submission of information instead of in a prescribed form to the Secretary of State, office holders and the registrar of companies (new Rule 7.30A) and in all other cases (new Rule 7.30B)(paragraph 114).

The Amendments come into force on 6th April 2010. However, Rules 4 to 6 of these Rules contain transitional provisions.

Footnotes

[^f00001]: 1986 c.45. Section 411 was relevantly amended by S.I. 2002/1037.

[^f00002]: S.I. 1986/1915, relevant amending instruments are S.I. 1987/1921, S.I. 2002/2709, S.I. 2003/2108, S.I. 2003/2109, S.I. 2003/2111, S.I. 2006/734 and S.I. 2009/662.

[^f00003]: Schedule B1 was inserted by the Enterprise Act 2002 (c.40), s.248(2) and Schedule 16.

[^f00004]: Section 246B was inserted by regulation 3(1) of S.I. 2010/18.

[^f00005]: Section 246A was inserted by regulation 3(1) of S.I. 2010/18.

[^f00006]: Section 1A was inserted by the Insolvency Act 2000 (c.39) s.1 and Schedule 1 paragraph 2.

[^f00007]: Schedule B1 was inserted by the Enterprise Act 2002 (c.40), s.248(2) and Schedule 16.

[^f00008]: Section 246B was inserted by regulation 3(1) of S.I. 2010/18.

[^f00009]: Section 246A was inserted by regulation 3(1) of S.I. 2010/18.