The Bank Insolvency (Scotland) Rules 2009

Business at the first meeting of creditors and contributories

24.—(1) At the first meeting of creditors the FSCS shall state whether or not it is resigning from the liquidation committee.

(2) At the meeting those creditors present or represented by proxy may–

(a) where the FSCS has not resigned, elect 2 or 4 individuals as new members of the liquidation committee;

(b) where the FSCS has resigned, elect 3 or 5 individuals as new members of the liquidation committee,

in place of members nominated by the Bank of England and the FSA.

(3) In accordance with section 100(6)(e) of the 2009 Act, the liquidation committee ceases to exist at the end of the meeting if no individuals are elected as mentioned or if the resulting committee would have fewer than 3 members or an even number of members. The maximum number of committee members will be 5.

(4) At the first meeting of the creditors, no resolutions shall be taken other than the following–

(a) if an application has been made to the court by creditors under rule 39 for the court to direct the bank liquidator to summon a meeting of creditors for the purpose of removing him, and the court has directed that a resolution may be passed at the first meeting of creditors to that effect–

(i) a resolution to remove the bank liquidator (or a resolution to remove one or more of the bank liquidators if joint liquidators were originally appointed); and

(ii) a resolution to appoint a named insolvency practitioner to be bank liquidator or two or more insolvency practitioners as joint bank liquidators;

(b) if no individuals have been elected to form a liquidation committee under paragraph (2), a resolution specifying the terms on which the liquidator is to be remunerated, or to defer consideration of that matter;

(c) where two or more persons are appointed jointly to act as bank liquidator, a resolution specifying which acts are to be done by both of them, all of them or by only one;

(d) a resolution to adjourn the meeting for not more than 3 weeks;

(e) any other resolution which the chair considers it right to allow for special reason.

(5) At the first meeting of contributories, no resolutions shall be taken other than the following–

(a) if no individuals have been elected to form a liquidation committee under paragraph (2), a resolution to form a liquidation committee (and rule 57 shall then apply);

(b) a resolution to adjourn the meeting for not more than 3 weeks;

(c) any other resolutions which the chair thinks it right to allow for special reason.