New Insolvency RulesPrint publication
The introduction of the new Insolvency Rules is now likely to be delayed until 2016 with the final form of the rules not expected to be published until the autumn. Practitioners will have – hopefully – a window of around six months to acquaint themselves with the new rules.
Among the changes we expect to see are:
- provisions to replace creditors’ meetings with communication by way of correspondence as the default method for decision-making
- creditors will be deemed to have consented unless 10 per cent or more of creditors by value or number object in writing
- the abolition of final creditors’ meetings in liquidation and bankruptcy
a simplified process for resignation of a liquidator or trustee in bankruptcy
- clarification of the obligations to notify the company under rule 2.20 (notice of intention to appoint an administrator)
- removal of the requirement for administrators to state prior professional relationships with the debtor company
- administrators will be able to advertise extensions to the time to submit the initial report
- a new application procedure for a debtor’s bankruptcy petition which will involve a new adjudication process, which will operate on an administrative rather than judicial basis.
The current rules date originally from 1986 and encompass several rounds of amendments, located in numerous different statutory instruments. Accordingly, the new rules should be welcomed. Look out for further updates when the rules are in final form.