# The Building Society Special Administration (England and Wales) Rules 2010, Rule 63: Table of applications and specific modifications

Extent: E+W

This Rule contains the Table of applied provisions of the Insolvency Rules 1986.
Rule
Subject
Specific modifications
Preparatory steps
2.27
Notification and advertisement of administrator’s appointment
2.28
Notice requiring statement of affairs
2.29
Verification and filing
2.30
Limited disclosure
On an application for disclosure under paragraph (4) any of the following may appear and be heard, or make written representations—
(a)the special administrator,
(b)the Bank of England, and
(c)the FCA and where relevant the PRA.
2.31
Release from duty to submit statement of affairs; extension of time
On an application under paragraph (2) for release or extension of time any of the following may appear and be heard, or make written representations—
(a)the special administrator,
(b)the Bank of England, and
(c)the FCA and where relevant the PRA.
2.32
Expenses of statement of affairs
Special administrator’s proposals and creditors’ meetings
2.33
Administrator’s proposals
Rule 2.33 is not applied – but equivalent provision is made by Part 3 of these Rules.
2.34
Meetings to consider administrator’s proposals
(1)Rule 2.34 applies in the Objective 2 Stage.
(2)The FCA and where relevant the PRA and the FSCS are added to the list in paragraph (2) of persons entitled to notice.
2.35
Creditors’ meetings generally
The FCA and where relevant the PRA and the FSCS are added to the list in paragraph (3) of persons to whose convenience the special administrator is to have regard.
2.36
Chairman at meetings
2.37
Meeting requisitioned by creditors
Treat the reference to the administrator’s statement of proposals as a reference to the special administrator’s statement of proposals in accordance with Rule 29 above.
2.38
Entitlement to vote
2.39
Admission and rejection of claims
2.40
Secured creditors
2.41
Holders of negotiable instruments
2.42
Hire-purchase, conditional sale and chattel leasing agreements
2.43
Resolutions
2.44
Minutes
2.45
Revision of the administrator’s proposals
In paragraph (2)(c) ignore the reference to the person making the appointment.
2.46
Notice to creditors
2.47
Reports to creditors
Rule 2.47 is not applied – but equivalent provision is made by Part 3 of these Rules.
2.48
Correspondence instead of creditors’ meetings
2.49
Venue and conduct of company meeting
In paragraph (5) the reference to a general meeting of the company summoned under the company’s articles of association, and in accordance with the applicable provisions of the Companies Act, has effect as a reference to a general meeting of the society summoned under the society’s rules, and in accordance with the applicable provisions of the Building Societies Act 1986.
Creditors’ committee
2.50
Constitution of committee
(A creditors’ committee cannot be established until the Objective 2 Stage – see the modifications for the application of paragraphs 50 to 58 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the Banking Act 2009.)
2.51
Formalities of establishment
2.52
Functions and meetings of the committee
2.53
The chairman at meetings
2.54
Quorum
2.55
Committee-members’ representatives
2.56
Resignation
2.57
Termination of membership
2.58
Removal
2.59
Vacancies
2.60
Procedure at meetings
2.61
Resolutions of creditors’ committee by post
2.62
Information from administrator
2.63
Expenses of members
2.64
Members’ dealing with the society
In respect of any application to set aside a transaction under paragraph (2)—
(a)notice of the application must be given to the FCA and where relevant the PRA, and
(b)the FCA and where relevant the PRA may appear and be heard.
2.65
Formal defects
Process of administration
2.66
Disposal of charged property
If an application is made during the Objective 1 Stage, then in addition to the requirements of Rule 2.66—
(a)the special administrator must notify the Bank of England of the time and place of the hearing,
(b)the Bank of England may appear, and
(c)if an order is made the special administrator must send a copy to the Bank of England as soon as is reasonably practicable.
2.67
Expenses of the administration
In addition to the matters listed in Rule 2.67(1), expenses in connection with provisional special administration are payable in the following order of priority—
(a)the cost of any security provided by the provisional special administrator takes priority equally with security provided by the special administrator, and
(b)the remuneration of the provisional special administrator ranks next, and
(c)any deposit lodged on an application for the appointment of a provisional special administrator ranks next.
2.68
Distributions to creditors: introduction
In paragraphs (1) and (2), references to creditors include references to shareholding members.
(Distributions in the case of special administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009 and during the Objective 1 Stage require the Bank of England’s consent – see the modification of the application of paragraph 65 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the Banking Act 2009.)
2.69
Debts of the insolvent company to rank equally
“Debts” do not include any amounts owing from the society to a member in respect of shares.
2.70
Dividends: supplementary
2.71
Division of unsold assets
2.72
Proving a debt
2.73
Claim established by witness statement
2.74
Costs of proving
2.75
Administrator to allow inspection of proofs
2.76
New administrator appointed
2.77
Admission and rejection of proofs for dividend
2.78
Appeal against decision on proof
In respect of any application under Rule 2.78(1) or (2)—
(a)notice of the application must be given to the FCA and where relevant the PRA and, during the Objective 1 Stage, the Bank of England, and
(b)the FCA and where relevant the PRA, and the Bank of England during the Objective 1 Stage, may appear and be heard.
2.79
Withdrawal or variation of proof
2.80
Expunging of proof by the court
In respect of any application under Rule 2.80(1)(b)—
(a)notice of the application must be given to the FCA and where relevant the PRA and, during the Objective 1 Stage, the Bank of England, and
(b)the FCA and where relevant the PRA, and the Bank of England during the Objective 1 Stage, may appear and be heard.
2.81
Estimate of quantum
2.82
Negotiable instruments, etc
2.83
Secured creditors
2.84
Discounts
2.85
Mutual credit and set-off
In addition to the matters listed in Rule 2.85(2)(a) to (e), “mutual dealings” does not include any mutual dealings between the society and a creditor who is also a shareholding member of the society in respect of shares held by that person in the society.
Where the conditions in paragraph (1) of Rule 49 of these Rules are met, Rule 2.85 applies with the modifications set out in Rule 49 in addition to the modifications set out above.
2.86
Debt in foreign currency
2.87
Payments of a periodical nature
2.88
Interest
2.89
Debt payable in future
2.90
Value of security
2.91
Surrender for non-disclosure
2.92
Redemption by administrator
2.93
Test of security’s value
2.94
Realisation of security by creditor
2.95
Notice of proposed distribution
(1)The notice in Rule 2.95(1) must also be given where the special administrator is proposing to make a distribution to shareholding members.
(2)The following are added to the list of those entitled to receive notice under Rule 2.95(2)—
(a)the FCA and where relevant the PRA,
(b)the FSCS,
(c)shareholding members of the society, and
(d)during the Objective 1 Stage of a special administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009, the Bank of England.
(3)The notice in Rule 2.95(1) shall state, where applicable, that the distribution is to shareholding members of the society.
(4)In Rule 2.95(4)(a) the reference to a distribution to creditors includes, where appropriate, a distribution to shareholding members.
2.96
Admission or rejection of proofs
2.97
Declaration of dividend
In Rule 2.97(1) the reference to one or more classes of creditor includes a reference to one or more classes of shareholding member.
2.98
Notice of declaration of dividend
(1)The following are added to the list of those entitled to receive notice under Rule 2.98(1)—
(a)the FCA and where relevant the PRA,
(b)the FSCS,
(c)shareholding members of the society, and
(d)during the Objective 1 Stage of a special administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009, the Bank of England.
(2)In the case of special administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009 and during the Objective 1 Stage, the particulars required by Rule 2.98(2) include details of any payment made from a scheme under a resolution fund order.
(3)The particulars required by Rule 2.98(2) include, where appropriate, details of any distribution to shareholding members.
2.99
Payment of dividends and related matters
In Rule 2.99(2) the reference to any creditor includes a reference to any shareholding member.
2.100
Notice of no dividend, or no further dividend
(1)The special administrator must copy any notice under Rule 2.100 to—
(a)the FCA and where relevant the PRA,
(b)the FSCS, and
(c)the Bank of England, in a case where it consented to a distribution under Rule 2.68 (as applied above).
(2)In Rule 2.100 the reference to creditors includes a reference to shareholding members.
2.101
Proof altered after payment of dividend
2.102
Secured creditors
2.103
Disqualification from dividend
In respect of any application for disqualification under Rule 2.103—
(a)notice of the application must be given to the FCA and where relevant the PRA, and
(b)the FCA and where relevant the PRA may appear and be heard.
2.104
Assignment of right to dividend
2.105
Debt payable at future time
The “relevant date” is the date of the special administration order.
The special administrator
2.106
Fixing of remuneration
(1)In the Objective 1 Stage the Bank of England shall fix the special administrator’s remuneration in accordance with Rule 2.106(2).
(2)In the Objective 2 Stage, Rule 2.106 applies (but pending action under paragraphs (3) or (5) arrangements established by the Bank of England in the Objective 1 Stage shall continue to apply).
2.107
Recourse to meeting of creditors
2.108
Recourse to the court
(1)In respect of remuneration fixed by the Bank of England—
(a)Rule 2.108 applies as if references to the creditors’ committee were references to the Bank of England, and
(b)the court shall have regard to the achievement of Objective 1.
(2)In respect of any application under Rule 2.108—
(a)notice of the application must be given to the FCA and where relevant the PRA, and
(b)the FCA and where relevant the PRA may appear and be heard.
2.109
Creditors’ claim that remuneration is excessive
Rule 2.109 applies only during the Objective 2 Stage.
4.127B and
Schedule 6
Remuneration where assets realised on behalf of chargeholder
Ending administration
2.110
Final progress reports
(1)The reference to Rule 2.47 is to be treated as a reference to Rule 36 above.
(2)In the case of special administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009 the final progress report—
(a)must not be made until the special administrator is satisfied that any payment likely to be made to the society from a scheme under a resolution fund order has been made, and
(b)must state whether any payment has been received and, if so, its amount.
2.114
Application to court by administrator
Rule 2.114 is not applied – but equivalent provision is made by Part 3 of these Rules.
2.118
Moving from administration to dissolution
Rule 2.118 is not applied – but equivalent provision is made by Part 3 of these Rules.
Replacing special administrator
2.119
Grounds for resignation
During the Objective 1 Stage the Bank of England’s consent, as well as the court’s permission, is required for resignation under paragraph (2).
2.120
Notice of intention to resign
The Bank of England and the FCA and where relevant the PRA are added to the list of those entitled to notice under paragraph (1).
2.121
Notice of resignation
2.122
Application to court to remove administrator from office
(An application may be made during the Objective 1 Stage only with the Bank of England’s consent – see the modifications for the application of paragraph 88 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the Banking Act 2009.)
(1)An application must state either—
(a)that the Bank of England has consented to its being made, or
(b)that the Objective 1 Stage has ended.
(2)The FCA and where relevant the PRA is added to the list of those entitled to notice under paragraph (2).
2.123
Notice of vacation of office on ceasing to be qualified
2.124
Death of administrator
2.125
Application to replace
Rule 2.125 is applied during the Objective 2 Stage only (and ignoring references to paragraph 95 of Schedule B1).
(For equivalent provision about application for removal by the Bank of England during the Objective 1 Stage (in accordance with the modifications for the application of paragraph 91 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the Banking Act 2009) see Part 3 of these Rules.
2.126
Notification and advertisement of replacement
2.127
Notification and advertisement of appointment of joint administrator
2.128
Notice to FCA of replacement or addition
2.129
Duties on vacating office
Provisional special administrator (see application of section 135 of the Insolvency Act 1986 in Table 2 in section 145 of the Banking Act 2009)
4.25
Appointment
Rule 4.25 is not applied – but equivalent provision is made by Part 3 of these Rules.
4.25A
Notice of appointment
Rule 4.25A is not applied – but equivalent provision is made by Part 3 of these Rules.
4.26
Order of appointment
Rule 4.26 is not applied – but equivalent provision is made by Part 3 of these Rules.
4.28
Security
4.29
Failure to give or keep up security
4.30
Remuneration
Ignore paragraph (4).
4.31
Termination of appointment
(1)An application for termination may be made by—
(a)the provisional special administrator, or
(b)the Bank of England.
(2)A provisional special administrator’s appointment terminates on the making of a special administration order.
Disclaimer
4.187
Notice of disclaimer
(In the case of special administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009 notice may be given during the Objective 1 Stage only with the Bank of England’s consent – see the modifications for the application of section 178 of the Insolvency Act 1986 in Table 2 in section 145 of the Banking Act 2009.)
4.188
Communication to interested persons
4.189
Additional notices
4.190
Duty to keep court informed
4.191
Application by interested party
4.192
Interest in property to be declared on request
4.193
Disclaimer presumed valid and effective
4.194
Application for exercise of court’s powers under section 181 of the Insolvency Act 1986
(Section 181 is applied by Table 2 in section 145 of the Banking Act 2009.)
Court procedure and practice
7.1
Application of Chapter 1 of Part 7
Chapter 1 does not apply to an application for a special administration order (which is addressed in Part 2 of these Rules).
7.2
Interpretation
7.3
Form and contents of application
7.3A
Application to disapply section 176A of the Insolvency Act 1986
7.4
Filing and service of application
7.4A
Notice of application under section 176A of the Insolvency Act 1986
7.5
Other hearings ex parte
7.6
Hearing of application
7.7
Use of witness statement evidence
7.8
Filing and service of witness statements
7.9
Use of reports
7.10
Adjournment of hearings; directions
7.16
Nomination and appointment of shorthand writers
7.17
Remuneration of shorthand writers
7.19
Enforcement of court orders
7.20
Orders enforcing compliance with Rules
7.21
Warrants
7.23
Warrants under section 236
7.27
Court records
7.28
Inspection of records
7.31
Right to inspect court file
Rule 7.31 is not applied – but equivalent provision is made in Part 4 of these Rules.
7.33
Costs: application of the Civil Procedure Rules
7.34
Requirement to assess costs by the detailed procedure
7.35
Procedure where detailed assessment required
7.36
Costs of execution or other process
7.38
Costs paid otherwise than out of the insolvent estate
7.39
Award of costs against responsible insolvency practitioner
7.40
Application for costs
7.41
Costs and expenses of witnesses
7.42
Final costs certificate
7.43
Persons who lack capacity to manage their affairs: introductory
7.44
Appointment of another person to act
7.45
Witness statement in support of application
7.46
Services of notices following appointment
7.47
Appeals and reviews of court orders
7.49
Procedure on appeal
7.51
Principal court rules and practice to apply
(The reference to the CPR, the practice and procedure of the High Court and of the county court is to be treated as a reference to the CPR (Part 52).)
7.53
Right of attendance
7.54
Insolvency practitioner’s solicitor
7.55
Formal defects
7.56
Restriction on concurrent proceedings and remedies
7.58
Security in court
7.59
Payment into court
7.60
Further information and disclosure
7.61
Office copies of documents
Proxies
8.1
Definition of proxy
8.2
Issue and use of forms
8.3
Use of proxies at meetings
8.4
Retention of proxies
8.5
Right of inspection of proxies
8.6
Proxy-holder with financial interest
Examination of persons
9.1
Preliminary
1.Part 9 applies to applications under section 236 of the Insolvency Act 1986 (inquiry into society’s dealings) as applied by Table 2 in section 145 of the Banking Act 2009.
2.Treat a reference to “the insolvent” as a reference to the society.
9.2
Form and contents of application
9.3
Order for examination, etc
9.4
Procedure for examination
9.5
Record of examination
9.6
Costs of proceedings
Miscellaneous and general
12.1
Regulation of specified administrative matters
A reference to the Secretary of State includes a reference to the Treasury.
12.2
Costs, expenses, etc
12.3
Provable debts
12.4
Notices
12.4A
Quorum at meetings
12.5
Evidence of proceedings at meeting
12.6
Documents issuing from Secretary of State
12.8
Insolvency practitioner’s security
12.9
Time-limits
12.10
Service by post
(Rule 12.10 applies subject to express provision about service made in these Rules.)
12.11
Service and notice: general
Part 6 of the CPR applies subject to any provision of these rules.
12.12
Service outside jurisdiction
Part 6 of the CPR applies with regard to service in Scotland or Northern Ireland, subject to any provision of these rules.
Where service is to take place outside the United Kingdom, where these rules provide for service, the court may direct how that service is to be effected. With regard to service otherwise, Part 6 of the CPR applies.
12.13
Confidentiality of documents
12.14
Notices sent simultaneously to same person
12.15
Right to copy documents
12.15A
Charge for copy documents
12.16
Non-receipt of notice of meeting
12.17
Right to have list of creditors
12.18
False claim of status as creditor, etc.
12.20
Gazette
12.21 and Schedule 5
Punishment of offences
12.22
Notice of order under section 176A of the Insolvency Act 1986
13.1 to 13.13
Interpretation and application

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Source: https://www.legislation.gov.uk/uksi/2010/2580/rule/63 (the official version)
Page: https://openlegislation.uk/building-society-special-administration-england-and-wales-rules-2010/rule-63
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.