Scotland Act 1998

C2. Insolvency U.K.

Section C2.

• In relation to business associations—

  (a)

  the modes of, the grounds for and the general legal effect of winding up, and the persons who may initiate winding up,

  (b)

  liability to contribute to assets on winding up,

  (c)

  powers of courts in relation to proceedings for winding up, other than the power to sist proceedings,

  (d)

  arrangements with creditors, and

  (e)

  procedures giving protection from creditors.

• Preferred or preferential debts for the purposes of the Bankruptcy (Scotland) Act 1985, the Insolvency Act 1986, and any other enactment relating to the sequestration of the estate of any person or to the winding up of business associations, the preference of such debts against other such debts and the extent of their preference over other types of debt.

• Regulation of insolvency practitioners.

• Co-operation of insolvency courts.

Exceptions

• In relation to business associations—

  (a)

  the process of winding up, including the person having responsibility for the conduct of a winding up or any part of it, and his conduct of it or of that part,

  (b)

  the effect of winding up on diligence, and

  (c)

  avoidance and adjustment of prior transactions on winding up.

• Floating charges and receivers, except in relation to preferential debts, regulation of insolvency practitioners and co-operation of insolvency courts.

Interpretation

• “Business association” has the meaning given in Section C1 of this Part of this Schedule, but does not include any person whose estate may be sequestrated under the Bankruptcy (Scotland) Act 1985 or any public body established by or under an enactment.

• “Winding up”, in relation to business associations, includes winding up of solvent, as well as insolvent, business associations.