Judicial Factors (Scotland) Act 2025

30 Approval of judicial factor’s scheme for distribution of factory estate

(1) This section applies where a judicial factor has formulated a scheme—

(a) for the distribution of the factory estate, on the basis that it appears to the judicial factor—

(i) that the purpose for which the judicial factor was appointed is fulfilled or no longer exists,

(ii) that there are not, or may not be, sufficient funds in the factory estate to meet the continuing expenses of the judicial factory, or

(b) which comprises a distribution of the factory estate by virtue of section 22(4).

(2) The judicial factor must send to the Accountant—

(a) a current inventory of the factory estate, and

(b) a copy of the proposed scheme.

(3) The Accountant may—

(a) approve the scheme (with or without modifications), or

(b) reject the scheme.

(4) If the Accountant approves the scheme, the judicial factor must without delay—

(a) intimate the approved scheme—

(i) where the factory estate is that of a charity, to OSCR, and

(ii) to each person who, so far as is known to the judicial factor after reasonable enquiry, has an interest in the estate, and

(b) send to each such person—

(i) a copy of the current inventory of the factory estate, and

(ii) a copy of the approved scheme.

(5) Where the factory estate is that of a charity, the judicial factor must without delay give notice to the general public, by way of advertisement, that a scheme for the distribution of the factory estate has been approved.

(6) The Accountant may dispense with the requirement in subsections (4)(a)(ii) and (5), in whole or in part, on cause shown.

(7) A person who receives intimation under subsection (4)(a) may, within the period of 21 days beginning on the day the person receives the intimation, lodge with the Accountant an objection to there being a distribution in accordance with the approved scheme.

(8) If no objection is lodged under subsection (7) (or an objection is lodged but subsequently withdrawn), the judicial factor must distribute the estate in accordance with the approved scheme.

(9) If an objection is lodged under subsection (7) (and is not subsequently withdrawn), the Accountant must—

(a) refer the objection to the court which appointed the judicial factor, and

(b) give notice of that referral to—

(i) the judicial factor, and

(ii) each person to whom intimation was given under subsection (4)(a).

(10) The court must require the objector to find caution for the expenses of the court proceedings unless it considers that, in all the circumstances, it would not be in the interests of justice to impose such a requirement.

(11) The court may, after hearing the objector, the judicial factor and any other person who it is satisfied has an interest in the matter—

(a) reject the objection and direct the judicial factor to distribute the estate in accordance with the approved scheme,

(b) instruct the judicial factor to distribute the estate in such manner as the court orders, or

(c) make such other order as the court considers appropriate.

(12) This section and sections 31 and 32 apply in relation to any formulation, scheme, approval, application or recording in relation to a part only of a factory estate as they apply in relation to a factory estate.