Section 6: Corporate bodies etc
36.Subsections (1) to (4) list the circumstances in which a body corporate or an unincorporated body is a “relevant person” for the purposes of the Act. The Act brings about a statutory transfer whether the insured is a limited company, a partnership, a limited liability partnership or some other entity subject to the procedures listed in this section.
37.Subsections (5) and (6) limit the circumstances in which a transfer is effected in the case of some of the procedures listed in the previous subsections. These restrictions prevent transfers from occurring in cases in which the third party’s position is unaffected by the procedure to which the insured is subject.
38.After the recall or reduction of a sequestration award made against an insured under Scots law, the insured will no longer be subject to one of the events capable of triggering a statutory transfer. Accordingly subsection (7) provides that the rights that were transferred under section 1 are re-transferred to the insured.
39.Subsection (8) states that where an insured is discharged under Scots law, but the discharge order is subsequently recalled or reduced, then the order is to be deemed to have been made and thus will have no effect on the rights of a third party under the Act.
