Explanatory note

This Order makes provision in Scotland for charging fees for the function of distributing sums paid to the Secretary of State under compensation orders and undertakings for the benefit of creditors. The ability for the Secretary of State to apply for compensation orders to be made against, and to accept compensation undertakings from, disqualified directors under section 15A of the Company Directors Disqualification Act 1986 (c.46) was introduced by section 110 of the Small Business, Enterprise and Employment Act 2015 (c.26) which came fully into force on 1st October 2015.

Pursuant to Article 3, the fee is to be satisfied out of the sum to be paid to a creditor in respect of the compensation order or undertaking. Its amount is to be calculated on the basis of the hourly rates set out in the Schedule and any necessary disbursements or expenses properly incurred.

Article 4 sets out when Value Added Tax must also be applied.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen. An explanatory memorandum is published alongside this instrument at www.legislation.gov.uk.