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The Insolvency (Scotland) Amendment Rules 2014

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Block transfer order

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11.—(1) After Rule 4.26 (removal of liquidator by court)(1) insert—

Power to make a block transfer of cases

4.26A.(1) This Rule applies where a person appointed as a liquidator (“the outgoing liquidator”)—

(a)dies;

(b)retires from practice; or

(c)is otherwise unable or unwilling to continue in office,

and it is expedient to transfer some or all of the cases in which the outgoing liquidator holds office to one or more liquidators (“the replacement liquidator”) in a single transaction.

(2) In a case to which this Rule applies the Court of Session may make an order (“a block transfer order”) appointing a replacement liquidator in the place of the outgoing liquidator.

(3) The replacement liquidator must be qualified to act as an insolvency practitioner.

Application for block transfer order

4.26B.(1) A single application may be made to the Court of Session for a block transfer order seeking—

(a)the removal of the outgoing liquidator by the exercise of any of the powers in—

(i)section 172(2)(2) and Rule 4.26A(2); and

(ii)section 108(2)(3);

(b)the appointment of a replacement liquidator by the exercise of any of the powers in—

(i)Rule 4.26A(2); and

(ii)section 108(2);

(c)such other order or direction as may be necessary or expedient in connection with the matters referred to in sub-paragraphs (a) and (b).

(2) An application may be made by—

(a)the outgoing liquidator;

(b)any person who holds the office of liquidator jointly with the outgoing liquidator;

(c)any person who is proposed to be appointed as the replacement liquidator; or

(d)the recognised professional body by which the outgoing liquidator is or was authorised.

(3) The application must include—

(a)evidence of the circumstances which gave rise to it being expedient to appoint a replacement liquidator;

(b)a statement that the replacement liquidator is an insolvency practitioner duly qualified under the Act(4) to be a replacement liquidator and consents to act as replacement liquidator; and

(c)the name of each case, the case number (if any) and, where relevant, the name of the sheriff court which has jurisdiction for each case.

(4) The application must be served on—

(a)the outgoing liquidator (if not the applicant or deceased);

(b)every person who holds office jointly with the outgoing liquidator; and

(c)any person the Court of Session directs.

Action following application for a block transfer order

4.26C.(1) In determining to what extent (if any) the costs of making an application under Rule 4.26B should be paid as an expense of the case to which the application relates, the Court of Session must take into account—

(a)the reasons for making the application;

(b)the number of cases to which the application relates;

(c)the value of the assets comprised in those cases;

(d)the nature and extent of costs involved.

(2) Where an appointment under Rule 4.26A(2) is made—

(a)the replacement liquidator must—

(i)as soon as reasonably practicable give notice of the appointment to the Accountant in Bankruptcy;

(ii)within 28 days give notice of the appointment to the creditors and contributories, or if the court so permits, advertise the appointment in accordance with the directions of the court; and

(iii)give notice to such other persons, and in such form, as the Court of Session may direct; and

(b)Rule 4.26(5)(c) does not apply.

(3) In any notice given by the replacement liquidator under this Rule the replacement liquidator must state—

(a)that the outgoing liquidator has been removed; and

(b)whether the outgoing liquidator has been released..

(2) After paragraph 7 of Schedule 2 (application of Part 4 in relation to members’ voluntary winding-up) insert—

Rules 4.26A to 4.26C

7A.  These Rules shall apply..

(1)

Rule 4.26 was amended by S.I. 1999/1820.

(2)

Section 172 (removal, etc (winding up by the court)) of the 1986 Act.

(3)

Section 108 (appointment or removal of liquidator by the court) of the 1986 Act.

(4)

The 1986 Act.

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