The Building Society Special Administration (Scotland) Rules 2009

Building society special administrator’s proposals: Objective 2 Stage

20.—(1) This rule makes provision about the statement of proposals which the special administrator is required to make under paragraph 49 of Schedule B1 to the Insolvency Act(1) as it applies during the Objective 2 Stage (in accordance with Table 1 in section 145 of the Banking Act).

(2) The statement must include–

(a) details of the court where the proceedings are and the court reference number;

(b) the registered name, any other trading names, and the principal office of the society;

(c) details of the appointment of the special administrator (including the date);

(d) in the case of joint special administrators, details of the apportionment of functions;

(e) the names of the directors and secretary and chief executive of the society and details of any shares they hold in the society;

(f) an account of the circumstances giving rise to the application for the appointment of the special administrator;

(g) if a statement of the society’s affairs has been submitted, a copy or summary of it with the comments of the special administrator, if any;

(h) if an order limiting the disclosure of the statement of affairs has been made under rule 2.22 of the 1986 Rules (as applied by rule 38 below), a statement of that fact, as well as–

(i) details of who provided the statement of affairs;

(ii) the date of the order for limited disclosure; and

(iii) the details or a summary of the details that are not subject to that order;

(i) if a full statement of affairs is not provided—

(i) the names, addresses and debts of the creditors including details of any security held (or, where the debt is a current account or a deposit account, a single statement of their aggregate debt);

(ii) details of the shares issued by the society (including the types of shares issued and the number of each type in issue);

(j) if no statement of affairs has been provided—

(i) details of the financial position of the society at the latest practicable date (which must, unless the court otherwise orders, be a date not earlier than that on which the society entered special administration);

(ii) a list of the society’s creditors including their names, addresses and details of their debts, including any security held (or, where the debt is a current account or a deposit account, a single statement of their aggregate debt);

(iii) details of the shares issued by the society (including the types of shares issued and the number of each type in issue); and

(iv) an explanation as to why there is no statement of affairs.

(k) the basis upon which it is proposed that the remuneration of the special administrator should be fixed under rule 2.39 of the 1986 Rules (as applied by rule 38 below);

(l) details of whether (and why) the special administrator proposes to apply to the court under section 176A(5) of the Insolvency Act(2) (omission of distribution to unsecured creditors: as applied by Table 2 in section 145 of the Banking Act)(unless the special administrator intends to propose a voluntary arrangement);

(m) an estimate of the value of the prescribed part for the purposes of section 176A of the Insolvency Act (unless the special administrator intends to propose a voluntary arrangement) certified as being made to the best of the special administrator’s knowledge and belief;

(n) an estimate of the value of the society’s net property (unless the special administrator intends to propose a voluntary arrangement) certified as being made to the best of the special administrator’s knowledge and belief;

(o) whether the special administrator proposes to pursue Objective 2(a) or Objective 2(b);

(p) if the special administrator proposes to pursue Objective 2(a), how it is envisaged the purpose of the special administration will be achieved;

(q) if the special administrator proposes to pursue Objective 2(b)–

(i) how it is envisaged the purpose of the special administration will be achieved; and

(ii) how it is proposed that the special administration shall end (winding-up or voluntary arrangement, in accordance with section 154 of the Banking Act);

(r) if the special administrator has decided not to call a meeting of creditors, the reasons for that decision;

(s) the manner in which the affairs and business of the society have been managed and financed since the date of the appointment of the special administrator (including the reasons for and terms of any disposal of assets);

(t) the manner in which the affairs and business of the society will be managed and financed if the proposals of the special administrator are approved; and

(u) any other information which the special administrator thinks necessary to enable creditors to decide whether or not to vote for the approval of the proposals.

(3) In the case of special administration following transfer to a bridge bank under section 12(2) of the Banking Act–

(a) the statement under paragraph 49 of Schedule B1 must state whether any payment is to be made to the society from a scheme under a resolution fund order; or

(b) if that information is unavailable when the statement under paragraph 49 of Schedule B1 is made, the special administrator must issue a supplemental statement as soon as reasonably practicable after the information becomes available.

(4) The statement–

(a) may exclude information, the disclosure of which could seriously prejudice the commercial interests of the society; and

(b) must include a statement of any exclusion.

(1)

Paragraph 49 of Schedule B1 was amended by paragraph 100(a) of Schedule 1(2) to S.I. 2008/948.

(2)

Section 176A was inserted by section 252 of the Enterprise Act 2002 (c.40).