# The Building Society Insolvency (Scotland) Rules 2010, Rule 25: Business at the first meeting of creditors and contributories

Extent: S

(1) At the first meeting of creditors the FSCS shall state whether or not it is resigning from the liquidation committee.
(2) At the meeting those creditors present or represented by proxy may—
(a) where the FSCS has not resigned, elect two or four individuals as new members of the liquidation committee;
(b) where the FSCS has resigned, elect three or five individuals as new members of the liquidation committee,
in place of members nominated by the Bank of England and the appropriate regulator.
(3) In accordance with section 100(6)(e) of the Banking Act, the liquidation committee ceases to exist at the end of the meeting if no individuals are elected as mentioned or if the resulting committee would have fewer than three members or an even number of members. The maximum number of committee members will be five.
(4) At the first meeting of the creditors, no resolutions shall be taken other than the following—
(a) if an application has been made to the court by creditors under rule 40 for the court to direct the building society liquidator to summon a meeting of creditors for the purpose of removing the building society liquidator, and the court has directed that a resolution may be passed at the first meeting of creditors to that effect—
(i) a resolution to remove the building society liquidator (or a resolution to remove one or more of the building society liquidators if joint liquidators were originally appointed); and
(ii) a resolution to appoint a named insolvency practitioner to be building society liquidator or two or more insolvency practitioners as joint building society liquidators;
(b) if no individuals have been elected to form a liquidation committee under paragraph (2), a resolution specifying the terms on which the liquidator is to be remunerated, or to defer consideration of that matter;
(c) where two or more persons are appointed jointly to act as building society liquidator, a resolution specifying which acts are to be done by both of them, all of them or by only one;
(d) a resolution to adjourn the meeting for not more than three weeks;
(e) any other resolution which the chair considers it right to allow for special reason.
(5) At the first meeting of contributories, no resolutions shall be taken other than the following–
(a) if no individuals have been elected to form a liquidation committee under paragraph (2), a resolution to form a liquidation committee (and rule 61 shall then apply);
(b) a resolution to adjourn the meeting for not more than three weeks;
(c) any other resolutions which the chair thinks it right to allow for special reason.
(6) The FSCS shall be entitled to be a member of any liquidation committee formed where the liquidation committee has ceased to exist at the end of the first meeting of the creditors.

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Source: https://www.legislation.gov.uk/uksi/2010/2584/rule/25 (the official version)
Page: https://openlegislation.uk/building-society-insolvency-scotland-rules-2010/rule-25
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.