Regulation 57 Meetings of creditors

Rule 24 of the Winding Up Rules (meetings of creditors) is amended as follows.

For paragraph (1) substitute—

“(1)

In the case of a company carrying on long-term business in whose case no stop order has been made, the creditors entitled to participate in creditors' meetings may be—

(a)

in relation to the long-term business assets of the company, only those who are creditors in respect of liabilities attributable to the long-term business of the company; and

(b)

in relation to the other business assets of the company, only those who are creditors in respect of liabilities attributable to the other business of the company.

(1A)

In a case where separate general meetings of the creditors are summoned by the liquidator pursuant to—

(a)

paragraph (1) above; or

(b)

regulation 28 of the Insurers (Reorganisation and Winding Up) Regulations 2003^f1 (composite insurers: general meetings of creditors),

chapter 8 of Part 4 and Part 8 of the principal rules apply to each such separate meeting.”.

After paragraph (2) insert—

“(3)

In paragraph (1)—

• “long-term business assets” means the assets representing the fund or funds maintained by the company in respect of its long-term business;

• “other business assets” means any assets of the company which are not long-term business assets.”.

Rule 23 of the Winding Up (Scotland) Rules is amended as follows.

For paragraph (1) substitute—

“(1)

In the case of a company carrying on long-term business in whose case no stop order has been made, the creditors entitled to participate in creditors' meetings may be—

(a)

in relation to the long-term business assets of the company, only those who are creditors in respect of liabilities attributable to the long-term business of the company; and

(b)

in relation to the other business assets of the company, only those who are creditors in respect of liabilities attributable to the other business of the company.

(1A)

In a case where separate general meetings of the creditors are summoned by the liquidator pursuant to—

(a)

paragraph (1) above; or

(b)

regulation 29 of the Insurers (Reorganisation and Winding Up) Regulations 2003^f2 (composite insurers: general meetings of creditors),

• chapter 4 (meetings of creditors) and rule 4.31 (final meeting) of Part 4 and Chapters 1 and 2 of Part 7 (meetings and proxies and company representation) of the principal rules apply to each such separate meeting.”.

After paragraph (2) insert—

“(3)

In paragraph (1)—

• “long-term business assets” means the assets representing the fund or funds maintained by the company in respect of its long-term business;

• “other business assets” means any assets of the company which are not long-term business assets.”.