Judicial Factors (Scotland) Act 2025

Schedule 1 Standard powers

(introduced by section 13(7))

1 To take possession of, collect and ingather the property of the factory estate.

2 On behalf of the factory estate—

(a) to bring or defend any action,

(b) to make any application to the court, or

(c) to engage in any other legal proceedings.

3 To carry out works.

4 To grant any deed necessary for carrying into effect a function vested in the judicial factor.

5 To carry on—

(a) the business (if any) of the factory estate, or

(b) any part of that business.

6 To enter into, or take over, a contract.

7 To pay a debt due by the estate without requiring the creditor to constitute the debt, provided that the judicial factor is satisfied that the debt is a proper debt of the factory estate.

8 To employ, or dismiss from employment, any person.

9 To appoint an agent to carry out business which the judicial factor does not have the competence to carry out.

10 To remunerate any person appointed under paragraph 9.

11 To sell the factory estate, or any part of the factory estate.

12 To grant, vary, or accept the surrender of a lease or tenancy of any duration of the heritable factory estate or of any part of the heritable factory estate.

13 To remove a tenant.

14 To take a lease or tenancy of any duration of any property if it is a lease or tenancy required for the business of the factory estate.

15 To make any kind of investment of the factory estate, including an investment in heritable property.

16 To appoint a person as the judicial factor’s nominee, to exercise the judicial factor’s function of investment under paragraph 15.

17 To authorise an agent to exercise any of the judicial factor’s investment management functions at the agent’s discretion.

18 To exchange any part of the heritable factory estate for heritable estate of a like, or greater, value.

19 To acquire property (whether heritable or moveable).

20 To borrow money on the security of the factory estate or of any part of the factory estate.

21 On behalf of the factory estate, to draw, accept, make or endorse any bill of exchange or promissory note.

22 To refer to arbitration a question affecting the factory estate.

23 To formulate and propose a scheme for division of the factory estate.

24 To apply to the court for—

(a) authority to act at variance with the purposes of the judicial factory,

(b) a variation of the judicial factor’s functions.

25 In respect of any securities of a company which are comprised in the factory estate, to concur, as if the judicial factor was entitled to the securities beneficially, in any scheme or arrangement for—

(a) the reconstruction of the company,

(b) the sale of the property and undertaking of the company, or any part of that property and undertaking, to another company,

(c) the acquisition of the securities of the company, or of control of those securities, by another company,

(d) the amalgamation of the company with another company, or

(e) the release, modification or variation of any rights, privileges or liabilities attached to the securities or any of the securities.

26 To accept any securities of the reconstructed, purchasing or new company in lieu of, or in exchange for, all or any of the original securities.

27 To retain any such securities for any period which the judicial factor could properly have retained the original securities.

28 To such extent as the judicial factor considers appropriate—

(a) to exercise any conditional or preferential right to subscribe for any securities in a company,

(b) to apply capital of the factory estate in payment of the consideration for such subscription,

(c) to retain the securities for any period for which the judicial factor has power to retain the holding in respect of which the right to subscribe was offered (but subject to any conditions subject to which the judicial factor has that power),

(d) to renounce any such conditional or preferential right, or

(e) to assign to any person (including any person with an interest in the factory estate), for the best consideration that reasonably can be obtained the benefit of, or title to, any such conditional or preferential right.

Schedule 2 Modification of enactments

(introduced by section 52(1))

Trusts (Scotland) Act 1921

1 (1) The Trusts (Scotland) Act 1921 is amended as follows.

(2) In section 2 (definitions)—

(a) in the definition of “Trust”, paragraph (b) and the word “and” immediately preceding that paragraph are repealed,

(b) in the definition of “Trust deed”, paragraph (b) and the word “and” immediately preceding that paragraph are repealed, and

(c) in the definition of “Trustee”, for the words “, executor nominate, and judicial factor” there is substituted “or executor nominate”.

(3) In section 3 (what trusts shall be held to include), in the proviso, paragraph (3) and the word “and” immediately preceding that paragraph are repealed.

(4) In section 8(2)(b) (conveyances to non-existing or unidentifiable persons)—

(a) the words “or judicial factor”, in the second place where they occur, are repealed, and

(b) the words from “, or a warrant” to “as the case may be” are repealed.

(5) In each of sections 22 (appointment of new trustees by the court) and 24 (completion of title by the beneficiary of a lapsed trust), the words from “in like manner” to “1874” are repealed.

(6) Section 25 (completion of title of judicial factors) is repealed.

Conveyancing (Scotland) Act 1924

2 In section 5(3)(b) of the Conveyancing (Scotland) Act 1924 (deduction of title)—

(a) for the words from the beginning to “are” there is substituted “Section 44 of the Conveyancing (Scotland) Act 1874 is”,

(b) for the words “section forty four of the said Act of 1874, as hereby amended,” there is substituted “that section”, and

(c) the words “shall be applicable to all judicial factors within the meaning of section three of the said Act of 1868, and both of such sections hereby amended” are repealed.

Companies Act 1989

3 In section 182(3)(b) of the Companies Act 1989 (powers of court in relation to certain proceedings begun before the commencement of that section)—

(a) the words “by a judicial factor appointed under section 11A of the Judicial Factors (Scotland) Act 1889” are repealed, and

(b) after the word “person” there is inserted “by a judicial factor appointed under the Judicial Factors (Scotland) Act 2025”.

Pension Schemes Act 1993

4 (1) The Pension Schemes Act 1993 is amended as follows.

(2) In section 123(2)(b) (interpretation of Chapter 2), for “section 11A of the Judicial Factors (Scotland) Act 1889 is required by that section” substitute “the Judicial Factors (Scotland) Act 2025 is required by virtue of section 129ZA of the Bankruptcy (Scotland) Act 2016”.

(3) In section 127(2)(b) transfer to Secretary of State of rights and remedies), for “11A of the Judicial Factors (Scotland) Act 1889” substitute “129ZA of that Act”.

Employment Rights Act 1996

5 (1) The Employment Rights Act 1996 is amended as follows.

(2) In each of sections 166(6)(b)(ii) (applications for payments) and 183(2)(b)(ii) (insolvency), for “section 11A of the Judicial Factors (Scotland) Act 1889 is required by that section to divide his insolvent” substitute “the Judicial Factors (Scotland) Act 2025 on his insolvent estate is required by virtue of section 129ZA of the Bankruptcy (Scotland) Act 2016 to divide the”.

(3) In section 189(2)(b) (transfer to Secretary of State of rights and remedies), for “11A of the Judicial Factors (Scotland) Act 1889” substitute “129ZA of that Act”.

Pensions Act 2004

6 In section 121(2)(e)(ii) of the Pensions Act 2004 (insolvency event, insolvency date and insolvency practitioner), for “section 11A of the Judicial Factors (Scotland) Act 1889 (c.39) is required by that section to divide the individual’s” substitute “the Judicial Factors (Scotland) Act 2025 on the individual’s insolvent estate is required by virtue of section 129ZA of the Bankruptcy (Scotland) Act 2016 to divide the”.

Bankruptcy and Diligence etc. (Scotland) Act 2007

7 In section 168(2)(a) of the Bankruptcy and Diligence etc. (Scotland) Act 2007 (inhibition effective against judicial factor), for “under section 11A of the Judicial Factors (Scotland) Act 1889 (c.39) (application for judicial factor on deceased person’s estate)” substitute “, under the Judicial Factors (Scotland) Act 2025, on the insolvent estate of a deceased person”.

Third Parties (Rights against Insurers) Act 2010

8 In section 5(2)(c) of the Third Parties (Rights against Insurers) Act 2010 (individuals who die insolvent), for “section 11A of the Judicial Factors (Scotland) Act 1889 in respect of” substitute “the Judicial Factors (Scotland) Act 2025 on”.

Courts Reform (Scotland) Act 2014

9 In section 39 of the Courts Reform (Scotland) Act 2014 (exclusive competence), after subsection (3) insert—

“(3A) This section does not apply to proceedings to appoint a judicial factor.”.

Bankruptcy (Scotland) Act 2016

10 (1) The Bankruptcy (Scotland) Act 2016 is amended as follows.

(2) In section 25 (effect of sequestration on diligence: estate of deceased debtor), in each of subsections (1)(b) and (4)(b), for “section 11A of the Judicial Factors (Scotland) Act 1889” substitute “the Judicial Factors (Scotland) Act 2025”.

(3) In section 88(1) (limitation on vesting)—

(a) in paragraph (b)(ii) the word “and” is repealed,

(b) after paragraph (c), there is inserted “, and

(d) property held by the debtor in the debtor’s capacity as a judicial factor.”.

(4) In section 98 (gratuitous alienations)—

(a) in subsection (1)(b)(iv), for “section 11A of the 1889 Act (see section 107)” substitute “the Judicial Factors (Scotland) Act 2025”,

(b) in subsection (11), for “section 11A of the 1889 Act” substitute “the Judicial Factors (Scotland) Act 2025 to administer the insolvent estate of a deceased person”.

(5) In section 99 (unfair preferences)—

(a) in subsection (1)(c)(ii), for “section 11A of the 1889 Act” substitute “the Judicial Factors (Scotland) Act 2025”,

(b) in subsection (8), for “section 11A of the 1889 Act” substitute “the Judicial Factors (Scotland) Act 2025 to administer the insolvent estate of a deceased person”.

(6) In section 100(1)(c)(iv) (recall of order for payment of capital sum on divorce or on dissolution of civil partnership), for “section 11A of the Judicial Factors (Scotland) Act 1889” substitute “the Judicial Factors (Scotland) Act 2025”.

(7) In section 107 (references in Part 7 to “the 1889 Act” and to “the 1999 Act”), the words “to “the 1889 Act” are to the Judicial Factors (Scotland) Act 1889, and” are repealed.

(8) After section 129 (priority in distribution) insert—

“129ZA Modification of section 129 and schedule 2 where judicial factor appointed

(1) This section applies where a judicial factor is appointed under the Judicial Factors (Scotland) Act 2025 on the estate of a deceased person and that estate is absolutely insolvent.

(2) Section 129 and schedule 2 have effect as if—

(a) for “the trustee” and “the interim trustee”, in each place they appear, there were substituted “the judicial factor”,

(b) for “the date of sequestration”, in each place it appears, there were substituted “the date of the judicial factor’s appointment”.”.

(9) In schedule 8, paragraph 1 is repealed.

Schedule 3 Repeals and revocations

(introduced by section 52(2))

Part 1 Repeals

Short title and chapter	Extent of repeal
Judicial Factors Act 1849	The whole Act.
Titles to Land Consolidation (Scotland) Act 1868	Section 24.
Conveyancing (Scotland) Act 1874	In section 44, the words “or judicial factor” in both places they occur.
Judicial Factors (Scotland) Act 1880	The whole Act.
Judicial Factors (Scotland) Act 1889	The whole Act.
Administration of Justice (Scotland) Act 1933	In section 25, the words “and Accountant of Court”.
Conveyancing Amendment (Scotland) Act 1938	Section 1, in so far as relating to judicial factors.
Trusts (Scotland) Act 1961	Section 2.
	Section 3.
Conveyancing and Feudal Reform (Scotland) Act 1970	In schedule 3, in paragraph 9(2)(b), the words “under section 11A of the Judicial Factors (Scotland) Act 1889”.
Superannuation Act 1972	In schedule 6, paragraph 2.
Law Reform (Miscellaneous Provisions) (Scotland) Act 1989	Section 7.
	Section 14.
Law Reform (Miscellaneous Provisions) (Scotland) Act 1990	Section 67
	In schedule 8, paragraph 21.
Children (Scotland) Act 1995	In schedule 4, paragraphs 2 and 4.
Adults with Incapacity (Scotland) Act 2000	In schedule 5, paragraphs 3 and 6.
Abolition of Feudal Tenure etc. (Scotland) Act 2000	In schedule 12, paragraph 8(8).
Bankruptcy and Diligence etc. (Scotland) Act 2007	In schedule 5, paragraph 5.

Part 2 Revocations

Title and date	Extent of revocation
Act of Sederunt (Aliments and Factors being Liable for Annual Rent) July 31st 1690	The whole Act of Sederunt.
Act of Sederunt (Factors upon and Tacksmen of Sequestrate Estates) December 25th 1708	The whole Act of Sederunt.
Act of Sederunt (More Speedy Discussing of Compts and Reckonings) November 22nd 1711	The whole Act of Sederunt.
Act of Sederunt (Dispatch of Business) July 31st 1717	The whole Act of Sederunt.
Act of Sederunt (Factors Appointed by the Lords on the Estates of Pupils not having Tutors and Others) February 13th 1730	The whole Act of Sederunt.