Part 2

Bank Insolvency

Process of bank liquidation

Liquidation committee: supplemental
101
1
A meeting of the liquidation committee may be summoned—
a
by any of the members, or
b
by the bank liquidator.
2
While the liquidation committee consists of the initial members (or their nominated replacements) a meeting is quorate only if all the members are present.
3
A person aggrieved by any action of the liquidation committee before it has passed a full payment resolution may apply to the court, which may make any order (including an order for the repayment of money).
4
The court may (whether on an application under subsection (3), on the application of a bank liquidator or otherwise) make an order that the liquidation committee is to be treated as having passed a full payment resolution.
5
If a liquidation committee fails to comply with section 100(5) the bank liquidator must apply to the court—
a
for an order under subsection (4) above, or
b
for directions under or by virtue of section 168(3) or 169(2) of the Insolvency Act 1986 as applied by section 103 below.
6
A nominating body under section 100(2) may replace its nominee at any time.
7
After the removal of the nominated members under section 100(6)(c) the FSA and the Bank of England—
a
may attend meetings of the liquidation committee,
b
are entitled to copies of documents relating to the liquidation committee’s business,
c
may make representations to the liquidation committee, and
d
may participate in legal proceedings relating to the bank insolvency.
8
Where a liquidation committee ceases to exist by virtue of section 100(6)(e)—
a
it may be re-formed by a creditors' meeting summoned by the bank liquidator for the purpose, and
b
the bank liquidator must summon a meeting for the purpose if requested to do so by one-tenth in value of the bank’s creditors.
9
Where a liquidation committee ceases to exist by virtue of section 100(6)(e) and has not been re-formed under subsection (8) above or under section 141(2) or 142(2) of the Insolvency Act 1986 (as applied by section 103 below)—
a
ignore a reference in this Part to the liquidation committee,
b
for section 113(2) to (4) substitute requirements for the bank liquidator, before making a proposal—
i
to produce a final report,
ii
to send copies in accordance with section 113(2)(b),
iii
to make it available in accordance with section 113(2)(c), and
iv
to be satisfied as specified in section 113(4)(b),
c
ignore Condition 2 in section 114, and
d
for section 115(1) to (5) substitute a power for the bank liquidator to apply to the Secretary of State or Accountant of Court for release and requirements that before making an application the bank liquidator must—
i
produce a final report,
ii
send copies in accordance with section 115(2)(b),
iii
make it available in accordance with section 115(2)(c), and
iv
notify the court and the registrar of companies of the intention to vacate office and to apply for release.