The Insolvency (England and Wales) (Amendment) Rules 2017

These Rules may be cited as the Insolvency (England and Wales) (Amendment) Rules 2017 and come into force on 6th April 2017.

These Rules extend to England and Wales only.

The Insolvency (England and Wales) Rules 2016 are amended as follows.

In rule 1.2, for the definition of “attendance and attend” substitute—

• ““attendance” and “attend” a person attends, or is in attendance at, a meeting who is present or attends remotely in accordance with section 246A or rule 15.6, or who participates in a virtual meeting, whether that person attends the meeting or virtual meeting in person, by proxy, or by corporate representative (in accordance with section 434B or section 323 of the Companies Act, as applicable);”.

In rule 1.37(1), for “(where the opt out applies)” substitute “unless the opt out does not apply”.

For rule 2.31(3), substitute—

“(3)

A notice summoning a meeting of the creditors must be delivered to the creditors at least seven days before the day fixed for the meeting.”.

In rule 2.40(4), for “a matter to be considered further” substitute “action to be taken”.

In rule 2.41(8), omit “(2)”.

In rule 8.28(7), omit “(3)”.

In rule 3.23(4), for “delivered” substitute “sent”.

In rule 3.24(1)(i)(i), for “from that date” substitute “since notice was given under paragraph 26(1) of Schedule B1”.

For rule 3.29(2)(b)(ii), substitute—

“(ii)

the requirement to deliver the statement of affairs to the administrator no later than eleven days after receipt of the notice requiring the statement of affairs;”.

In rule 3.42, after paragraph (5), insert—

“(6)

A copy of the statement of revised proposals under rule 3.43(3) must be delivered to the registrar of companies not later than five days after the report under rule 3.43(1) is delivered.”

In rule 4.1(1), after the word “applies” in the second place it occurs, insert “(other than those appointed under section 51 (Scottish Receiverships))”.

In rule 5.7(7)(g)(ii), for “meeting of the company’s creditors” substitute “company meeting”.

In rule 5.17(3)(h), for “177(4)” substitute “177(3)”.

In rule 6.37(3)(h), for “177(4)” substitute “177(3)”.

In rule 7.93(3)(g), for “177(4)” substitute “177(3)”.

In rule 6.13(1)(b), for “6.10” substitute “6.11”.

In rule 6.12(6), for “deliver” substitute “send”.

For rule 6.20(2), substitute—

“(2)

The liquidator’s appointment takes effect from the date of the passing of the resolution of the company or, where the creditors decide to appoint a person who is not the person appointed by the company, from the relevant decision date.”.

In rule 6.44(1), in the definition of “approval” and “authorisation”, for “176ZA(3)” substitute “176ZA(1)”.

For rule 7.108(2), substitute—

“(2)

The expenses of the winding up are payable out of—

(a)

assets of the company available for the payment of general creditors, including—

(i)

proceeds of any legal action which the liquidator has power to bring in the liquidator’s own name or in the name of the company;

(ii)

proceeds arising from any award made under any arbitration or other dispute resolution procedure which the liquidator has power to bring in the liquidator’s own name or in the name of the company;

(iii)

any payments made under any compromise or other agreement intended to avoid legal action or recourse to arbitration or to any other dispute resolution procedure;

(iv)

payments made as a result of an assignment or a settlement of any such action, arrangement or procedure in lieu of or before any judgment being given or award being made; and

(b)

subject as provided in rules 7.111 to 7.116, property comprised in or subject to a floating charge created by the company.”

For rule 8.24(2)(b), substitute—

“(b)

list the creditors who voted or attended or who were represented at the meeting or decision procedure (as applicable) used to consider the proposal, setting out (with their respective values) how they voted on each resolution or whether they abstained;”.

In rule 9.2(3)—

Before rule 10.115 insert—

“Interpretation

10.114A

In this Chapter, the “permitted fee” means the amount which is prescribed for the purposes of section 7(4)(a) of the Attachment of Earnings Act 1971.”

After rule 10.137(5), insert—

“(6)

The adjudicator is not in any event to be liable for costs arising on an application under section 282.”

In rule 10.149(a)(i) for the words “the bankrupt” in the second place they occur, substitute “the official receiver or the trustee”.

Before rule 10.154 insert—

“Application

10.153A

The rules in this chapter apply to proceedings arising out of criminal bankruptcy orders.”.

Omit rule 10.158(a).

In rule 12.59(2)(b)(iii), after “Registrar in Bankruptcy” insert “of the High Court”.

In rule 15.3(d), omit “or”.

In rule 15.6, after (7) insert—

“(8)

For the purpose of determining whether the thresholds under section 246ZE(7) or 379ZA(7) are met, the convener must calculate the value of the creditor’s debt by reference to rule 15.31.”.

In rule 15.8(3)—

After rule 15.21, insert—

“(2)

However, where a decision on the appointment of a liquidator under rule 6.14(2)(b), 6.14(4) or 6.14(6) is made by a meeting or a virtual meeting, the chair of the meeting must be the convener.”

For 15.34(2), substitute—

“(2)

In the case of an administration, a decision is not made if those voting against it include more than half in value of the creditors to whom notice of the decision procedure was delivered who are not, to the best of the convener’s or chair’s belief, persons connected with the company.”

In rule 16.3—

In rule 18.18(3), after the word “procedure” insert “except in a case under paragraph (4)”.

In paragraph 5(1)(d) of Schedule 2—

In paragraph 5(2) of Schedule 2, omit subparagraph (j).

In paragraph 6(1)(a)(iii) of Schedule 2—

In paragraph 7(2) of Schedule 2, omit “but has not been registered on the commencement date” and “once the notice has been registered”.

After paragraph 7(4) of Schedule 2 insert—

“(5)

Where rules 18.6, 18.7 or 18.8 prescribe the periods for which progress reports must be made but before the commencement date an office-holder has ceased to act resulting in a change in reporting period under 1986 rule 2.47(3A), 2.47(3B) 4.49B(5), 4.49C(3), or 6.78A(4), the period for which reports must be made is the period for which reports were required to be made under the 1986 Rules immediately before the commencement date.”

In the table of requirements for service under paragraph 6 of Schedule 4, in the third column, against the corresponding entries in the first column “3.16 (& para 15 of Sch B1)” and “3.23 (& para 26 of Sch B1)”, for “Claim form” substitute “Other document”.

In Schedule 5—

In paragraph 16(c) of Schedule 8, after “is” insert “or was”.

In paragraph 15(b) of Schedule 9, after “is” insert “or was”.

In paragraph 16 of Schedule 9, for “in relation of” substitute “in relation to”.

In paragraphs 17, 18 and 22 of Schedule 9 for “in relation to” substitute “in respect of”.

(This note is not part of the Rules)