The Insolvency Rules 2016
Below are a number of articles covering the new Insolvency Rules which came into force on 6 April 2017.
Placing a Company into CVL
Changes to the Insolvency Act 1986 ("Act"). SBEEA 2015 makes a host of supplemental amendments to the Act, the general effect of which is remove references to creditors' meetings and replace them with the alternative decision processes.
Standard Forms for Insolvency Procedures - Insolvency Practice Direction
The Court has recently announced it will be publishing some standard forms for insolvency procedures, to be published under the Insolvency Practice Direction.
Amendments to the Insolvency Act 1986 from 6 April 2017
As well as the new Insolvency Rules coming into force on 6 April, there are over 100 amendments to the Insolvency Act that will come into force as well.
Insolvency Rules - Applications and After Acquired Property
Rule 12 sets out rules relating to applications, (excluding administration applications, winding up petitions and creditors' bankruptcy petitions).
Insolvency Rules - Expedited Petitions, Provisional Liquidation and Validation Orders
It will be rare that an expedited petition is appropriate - the case law concerns instances where only compulsory liquidation is possible for a type of entity but the usual process would cause significant prejudice to creditors, e.g. credit unions.
Insolvency Rules - Creditors' Bankruptcy Petition
The rules for these petitions are contained in 10.6 to 10.33. This section also covers IVA supervisors presenting a petition. The good news is that under the new Rules, there are very few changes to the current procedure.
Insolvency Rules - Application to Set Aside a Statutory Demand
Set Aside Applications were previously governed by rules 6.4 and 6.5. They are now governed by Rules 10.4 and 10.5 which largely replicate the old rules.
Insolvency Rules 2016 - MVL's
In terms of the basic requirements for the Declaration of Solvency, there's little significant change - all of the directors (or a majority of them) have made full inquiry and, having done so, are of the opinion the company will be able to pay its debts in full (with interest at the Official Rate) within a specified time, not exceeding 12 months.
Insolvency Rules - Disclaimer
The Rules relating to Disclaimer remain largely unchanged, except for bankruptcy and liquidation being included in the same section and some minor updates to the Act. These are incorporated in Rule 19.8, and affect s.307 and s.320 Insolvency Act 1986. The deadlines for all actions remain unchanged.
Insolvency Rules 2016 - New Decision Making Procedures
Part 15 Insolvency Rules 2016 consolidates the rules in relation to notices, voting rights, exclusions and appeals introducing some much needed consistency between the different insolvency processes.
Deemed Consent - Rule 15.7
The Deemed Consent procedure is set out in sections 246ZF (corporate insolvency) and 379ZB (personal insolvency) of the Insolvency Act 1986, as inserted by the Small Business, Enterprise and Employment Act 2015, and rule 15.7 of the Insolvency Rules 2016.
Remuneration of Officeholders
Rules 18.15 to 18.38 of the Insolvency Rules 2016 deals with remuneration principles, fixing of remuneration, challenges by creditors and applications to Court by officeholders in relation to their remuneration placing all the rules surrounding remuneration in one place as opposed to dotted around the various procedures in the old rules.
Websites and Electronic Delivery
This briefing note addresses the effect of the Insolvency Rules 2016 ("Rules") to the: (i) Electronic delivery of documents; and (ii) use of Websites to deliver documents.
Insolvency Rules 2016 - Out of Court Appointment of Administrators
The out of Court appointment processes are broadly similar to the processes under the Insolvency Rules 1986 with some minor amendments. The most significant change is the abolition of the prescribed forms for appointment documents.