Regulation 14 Reports to creditors

(1)

This regulation applies where, on or after 20th April 2003—

(a)

a liquidator is appointed in accordance with section 100 of the 1986 Act or Article 86 of the 1986 Order (creditors' voluntary winding up: appointment of liquidator);

(b)

a winding up order is made by the court; or

(c)

a provisional liquidator is appointed.

(2)

The liquidator or provisional liquidator (as the case may be) must send a report once in every 12 months beginning with the date when his appointment has effect to every known creditor.

(3)

The requirement in paragraph (2) does not apply where a liquidator or provisional liquidator is required by order of the court to send a report to creditors at intervals which are more frequent than those required by this regulation.

(4)

This regulation is without prejudice to any requirement to send a report to creditors, imposed by the court on the liquidator or provisional liquidator, which is supplementary to the requirements of this regulation.

(5)

A liquidator or provisional liquidator commits an offence if he fails without reasonable excuse to comply with an applicable requirement under this regulation, and is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(6)

For the purposes of this regulation—

(a)

“known creditor” means—

(i)

a creditor who is known to the liquidator or provisional liquidator, and

(ii)

in a case falling within paragraph (1)(b) or (c), a creditor who is specified in the insurer’s statement of affairs (within the meaning of section 131 of the 1986 Act or Article 111 of the 1989 Order).

(b)

“report” means a written report setting out the position generally as regards the progress of the winding up or provisional liquidation (as the case may be).