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United Kingdom Statutory Instruments
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URL: http://www.bailii.org/uk/legis/num_reg/2003/20032108.html

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2003 No. 2108 (S. 7)

INSOLVENCY, SCOTLAND

COMPANIES

The Enterprise Act 2002 (Consequential Amendments) (Prescribed Part) (Scotland) Order 2003

  Made 8th August 2003 
  Laid before Parliament 13th August 2003 
  Coming into force 15th September 2003 

The Secretary of State, in exercise of the powers conferred upon her by section 277(1) of the Enterprise Act 2002[1] hereby makes the following Order:-

Citation, commencement and interpretation
     1.  - (1) This Order may be cited as the Enterprise Act 2002 (Consequential Amendments) (Prescribed Part) (Scotland) Order 2003 and shall come into force on 15th September 2003.

    (2) In this Order "the Act" means the Enterprise Act 2002, "the Rules" means the Insolvency (Scotland) Rules 1986[2] and references to numbered Rules are to the Rules so numbered in the Rules.



PART 1 -

AMENDMENTS TO THE INSOLVENCY (SCOTLAND) RULES 1986

     2. The Rules shall be amended in accordance with this Part.

Amendment to Introductory Provisions
     3. In Rule 0.2 (interpretation), in the appropriate alphabetical location, add ""prescribed part" has the same meaning as it does in section 176A(2)(a) of the Act".

Amendments to Part 1 - Company Voluntary Arrangements
     4.  - (1) In Rule 1.3 (contents of proposal), after sub-paragraph (2)(c) insert-

    (2) In Rule 1.10 (preparation of proposal)-

    (3) In Rule 1.23 (completion or termination of the arrangement)[3], after paragraph (2) insert-

Amendments to Part 3 - Receivers
     5. After Rule 3.8 (members' dealings with the company) insert-

Amendments to Part 4 - Winding Up by the Court
     6.  - (1) In Rule 4.10(1) (information to creditors and contributories), after paragraph (1) insert-

    (2) In Rule 4.28(2) (resignation of liquidator), after the word "payments" insert "and a statement as to the amount paid to unsecured creditors by virtue of the application of section 176A (prescribed part)".

    (3) In Rule 4.31(2) (final meeting), after the word "payments" insert "and a statement as to the amount paid to unsecured creditors by virtue of the application of section 176A (prescribed part)".

Amendments to Part 7 - Provisions of General Application
     7. After rule 7.13 (report of meeting) insert-



     8. At the end of Rule 7.31, insert ", with the exception of the fees, costs, charges and other expenses associated with the prescribed part, which shall be met out of the prescribed part" .

Amendments to Schedule 1 - Modifications of Part 4 in relation to Creditors' Voluntary Winding Up
     9.  - (1) Rule 4.10 as substituted by paragraph 6 of Schedule 1 to the Rules is renumbered as Rule 4.10(1), and the following inserted after the paragraph so renumbered-

    (2) In Rule 4.31(2) as substituted by paragraph 18 of Schedule 1 to the Rules, after the word "payments" insert "and a statement as to the amount paid to unsecured creditors by virtue of the application of section 176A (prescribed part)".

Amendments to Schedule 5 - Forms
     10.  - (1) There shall be inserted in Schedule 5 to the Rules, following Form 4.30 (Scot)[4], the form set out in Part 1 of the Schedule to this Order.

    (2) For Page 2 of Form 4.4 (Scot) in Schedule 5 to the Rules substitute the page set out in Part 2 of the Schedule to this Order.



PART 2 -

AMENDMENTS TO THE RECEIVERS (SCOTLAND) REGULATIONS 1986

     11.  - (1) Regulation 7 of the Receivers (Scotland) Regulations 1986[5] is renumbered as regulation 7(1) and the following inserted after the paragraph so renumbered-

    (2) For Page 2 of Form 5 (Scot) substitute the page set out in Part 2 of the Schedule to this Order.


NIGEL GRIFFITHS
Parliamentary Under-Secretary of State For Small Business and Enterprise,

Department of Trade and Industry
8th August 2003



SCHEDULE
Article 10, 11



Part 1





Part 2




EXPLANATORY NOTE

(This note is not part of the Order)


This Order amends the Insolvency (Scotland) Rules 1986 (S.I. 1986/1915) ("the Rules") and the Receivers (Scotland) Regulations 1986 (S.I. 1986/1917) ("the Regulations") in consequence of the introduction of a share of assets for unsecured creditors known as the "prescribed part" by section 176A of the Insolvency Act 1986 (c.45) ("the 1986 Act"), as inserted by section 252 of the Enterprise Act 2002 (c.40). These amendments concern the provision of information for creditors, the powers for receivers to deal with the prescribed part and applications to disapply the prescribed part.

Part 1 of the Order amends the Rules. Article 3 inserts a definition of "prescribed part". Articles 4, 6 and 9 insert new provision for the directors, liquidator or admininistrator (as the case may be) to provide the creditors with an estimate of the value of the prescribed part and of the company's net property; whether or not the Insolvency Practitioner proposes to apply to the court under section 176A(5) of the 1986 Act for section 176A(2) to be disapplied; and to report to the creditors the amount paid, if any, to unsecured creditors by virtue of the application of section 176A. Article 5 inserts a provision governing the disposal of the prescribed part by a receiver. Article 7 inserts provisions of general application governing the making of applications under section 176A(5) and the notification of orders made under that section. Article 8 amends Rule 7.31 (fees, expenses, etc) to providing that the fees, costs, charges and other expenses associated with the prescribed part shall be met out of the prescribed part. Article 10 inserts into Schedule 5 of the Rules a new Form 4.31 (Scot) (Notice in respect of order under section 176A), and substitutes a new page for page 2 of the existing Form 4.4 (Scot).

Part 2 of the Order amends the Regulations. Article 11 inserts provision for the receiver to provide creditors with an estimate of the value of the prescribed part and of the company's net property, and to state whether (and, if so, why) he intends to apply to the court under section 176A(5) of the 1986 Act for section 176A(2) to be disapplied. Article 11(2) substitutes a new page for page 2 of the existing Form 5 (Scot) as set out in the Schedule to the Regulations.

Notes:

 [1] 2002 c.40.back

[2] S.I. 1986/1915: amended by S.I. 1987/1921, 1999/1820, 2002/2709 and 2003/2109.back

[3] Rule 1.23 was substituted by S.I. 2002/2709.back

[4] Form 4.30(Scot) was inserted by S.I. 2003/2109.back

[5] S.I. 1986/1917.back


ISBN 011062427 0


  Prepared 26 August 2003

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