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Company Law Memo 2006 Newsletter Issue 5 (October)

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NEWS ROUND-UP

The Insolvency Service has reported on the progress of its project to modernise and consolidate secondary insolvency legislation.  It is currently re-drafting the Insolvency Rules, which will be divided into the following parts:

» Company Voluntary Arrangements;

» Individual Voluntary Arrangements;

» Administration;

» Administrative Receivership;

» Liquidation;

» Bankruptcy;

» Common Parts, comprising:

- Public Examination;

- Special Manager;

- EC Regulation;

- Secured Creditors;

- Creditors’ and Liquidation Committee;

- Disclaimer;

- Machinery for proving and quantification of claims and distributions;

- Remuneration; and

- Meetings.  

» Rules of general application; and

» Schedules.

The “common parts” will contain the Rules which apply in the same way to different insolvency procedures, mainly to administration, liquidation and bankruptcy. 

The Insolvency Service also proposes to merge the Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules (SI 1987/2023) and the Insolvent Companies (Reports on Conduct of Directors) Rules (SI 1996/1909) into one set of “Disqualification Rules”. 

The draft Rules will be reviewed by the Insolvency Rules Committee and put out to consultation with relevant stakeholders around the middle of 2007.  The Insolvency Service expects the new secondary insolvency legislation to come into force in April 2008.

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Review of insolvency secondary legislation

See CLM:  ¶7364