Corporate insolvency in Scotland
Corporate Insolvency (Scotland) Rules
The draft Bill to introduce amendments to Scottish Corporate Insolvency Rules is primarily focussed on disentangling the Bankruptcy (Scotland) Act from the corporate insolvency Rules. It is expected that the draft Bill will be laid before the Scottish Parliament during the Spring 2014.
Consolidation of Scottish Insolvency Rules
The Insolvency Service has appointed a Focus Group to look at the consolidation of Scottish Insolvency Rules. The intention is to produce a better structured set of rules, restating the existing rules more clearly, using modern language and removing duplication and drafting inconsistencies.
Users of insolvency rules will be invited to comment on a full working draft of the new rules which will be published in due course.
The Insolvency (Scotland) Amendment Rules 2014
The Insolvency (Scotland) Amendment Rules 2014 ("the 2014 Rules") came into force on 30 May 2014.
The 2014 Rules amend the Insolvency (Scotland) Rules 1986 by removing the application of provisions of the Bankruptcy (Scotland) Act 1985 ("the 1985 Act") in relation to receivership and liquidation. In the main, the relevant provisions of the application of the 1985 Act have been restated using corporate insolvency terminology. Important amendments are made in respect of interim claims for remuneration and the appeal period relating to remuneration and outlays. The initial meeting of a liquidation committee must now be held within 6 weeks of the committee's establishment rather than the current 3 months.
In addition the 2014 Rules introduce:
- new provisions to block transfer liquidation appointments by application to the Court of Session
- new provisions to apply to the court to limit disclosure from the statement of affairs in receivership or liquidations where it would be prejudicial to the conduct of the receivership/liquidation or where disclosure might reasonably be expected to lead to violence against any person
- new provisions to allow for the electronic submission and delivery of forms, notices and other documents in receiverships and liquidations
- an amended Form 4.9 (Scot) – Notice of appointment of liquidation
- an amended Form 4.22 (Scot) - Notice of certificate that creditors paid in full
Minor consequential amendments to the rules in relation to administrations are also made.
The 2014 Rules are applicable where a receiver is appointed, a petition for liquidation is lodged or a winding up resolution passed on or after 30 May 2014.
The Insolvency (Scotland) Amendment Rules 2010
The Insolvency (Scotland) Amendment Rules 2010 came into effect on 6 April 2010. Rule changes that apply to Scotland which arise from the Government's modernisation programme relate to Administrations and Company Voluntary Arrangements (being reserved to the UK Government). Some of the main changes allow for documents and information to be delivered electronically, remote attendance at creditors' and creditors' committee meetings, the introduction of "standard content" provisions for Edinburgh Gazette notices and for advertising other than in the Edinburgh Gazette, and provision for an administrator or other qualified insolvency practitioner to be able to recover pre-administration expenses before the formal start of the administration