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FOCUS ON…: INSOLVENCY LEGISLATION |
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Insolvency legislation consolidation and modernisation See CLM ¶7362+ SI 2010/18 SI 2010/686 SI 2010/7334 The Insolvency Service’s project on the consolidation and modernisation of insolvency legislation and Rules is taking a big step forward this spring (see CLM 2009 Newsletter Issue 6). On 6 April 2010 several changes will be introduced: a. the Legislative Reform (Insolvency) (Miscellaneous Provisions) Order 2010 will come into force. This will: » implement the new procedures for remote attendance at meetings and the ability for insolvency practitioners to post information during insolvency proceedings on websites; » remove unnecessary administrative burdens, such as replacing the requirements for annual meetings to be held in CVL and MVL with requirements to provide progress reports, removing the requirement to report to court at various intervals during CVA and removing the requirement for the liquidator to obtain sanction for some acts; and » remove inconsistencies between the Insolvency Act and the Rules by allowing things that have to be provided in writing to be in electronic form and replacing the use of affidavits with witness statements verified by statements of truth; b. the Insolvency (Amendment) Rules 2010 will come into force. These are intended to work with the Legislative Reform Order to implement the above changes. They also implement several other aspects to the modernisation project including: » updating the language used throughout the Rules as follows:
» reducing the occasions on which documents in insolvency proceedings will have to be filed at court or Companies House; » enabling creditors to approve the pre-appointment fees and expenses of an administrator retrospectively where a company enters administration; » giving creditors more options as to the basis on which they can fix insolvency practitioners’ remuneration; » setting out standard minimum contents for all Gazette notices; and » giving the court a new power to order the block transfer of cases from one insolvency practitioner to another where the outgoing insolvency practitioner has been removed by the court, retired from practice, died or is otherwise unable or unwilling to continue in office; c. the Insolvency (Amendment) (No 2) Rules 2010 will come into force, which make minor corrections and amendments to the Insolvency (Amendment) Rules 2010; and d. as a result of the above changes, certain insolvency forms used at Companies House will change. For the most part, the changes apply to companies entering insolvency procedures on or after 6 April 2010. Readers should check forthcoming online updates for precise details of the changes. |
