Explanatory note

These Regulations make consequential amendments, transitional and savings provisions for Scotland in consequence of the company insolvency provisions in sections 122, 124 and 126 and Schedule 9, Part 1 (Company Insolvency) of the Small Business, Enterprise and Employment Act 2015 (c. 26) (“the 2015 Act”) where these introduced reforms for creditors meetings and notices by amending the Insolvency Act 1986 (c. 45) (“the SBEEA reforms”). The SBEEA reforms came into force in England and Wales on 6th April 2017 and came into force in Scotland on 6th April 2019. The Regulations also make a minor amendment to the Insolvent Partnership Order 1994 (S.I. 1994/2421) (“the IPO 1994”).

These Regulations will come into force on 23rd July 2019 and in consequence of the commencement on the 6th April 2019 (by S.I. 2019/816) of the SBEEA reforms in Scotland.

Part 2 of these Regulations make consequential amendments to secondary legislation for the most part in consequence of the coming into force of the SBEEA reforms in Scotland. However, regulation 3 (which extends to England and Wales only) makes minor amendments to Schedule 7 to the IPO 1994. The provisions make minor amendments to the vacation of office of a trustee appointed in the individual bankruptcy of the members of an insolvent partnership under Article 11 of the IPO 1994.

Part 3 of these Regulations makes transitional provision, where necessary, for amendments made to give effect to the reforms. The transitional provision ensures that certain amendments will not have effect in relation to creditors’ meetings arranged before 6th April 2019 which are to be held on or after the date on which these Regulations come into force.

Part 4 of these Regulations makes saving provision for the Insolvency Act 1986 so that it continues to have effect in relation to proceedings under certain instruments as if the SBEEA reforms had not been enacted. It also makes saving provision for the Insolvency (Scotland) Rules 1986 (1986/1915) which were revoked on 6th April 2019 by the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018 (S.I. 1082/2018) and the Insolvency (Scotland) (Receivership and Winding up) Rules 2018 (S.S.I. 347/2018). These savings are necessary to ensure that the SBEEA reforms do not apply to certain special insolvency rules and procedures.

No impact assessment has been prepared for these Regulations as no impact on the private or voluntary sectors is foreseen.

An Explanatory Memorandum has been prepared and is available alongside these Regulations at www.legislation.gov.uk.