The Bank Insolvency (Scotland) Rules 2009

PART 9 THE LIQUIDATION COMMITTEE

Application of rules

57.  The rules in this Part apply only in relation to the liquidation committee established under rule 23 after a full payment resolution has been passed.

Membership of committee

58.—(1) Apply rule 4.41 of the 1986 Rules(1).

(2) For rule 4.41(1) substitute–

“(1) Subject to rule 4.43 of the 1986 Rules as applied by rule 56 of the 2009 Rules, the liquidation committee shall consist of either 3 or 5 creditors of the bank, elected by the meeting of creditors held under rule 23 of those Rules.”.

(3) Ignore paragraphs (3) and (6) and in paragraph (5) ignore any reference to contributory members.

Formalities of establishment

59.—(1) Apply rule 4.42 of the 1986 Rules(2).

Committee established by contributories

60.—(1) Apply rule 4.43 of the 1986 Rules(3).

(2) For rule 4.43(1) of that rule substitute–

“(1) This rule applies where the outcome of the creditors’ meeting summoned by the bank liquidator under rule 23 of the 2009 Rules is, by virtue of rule 24(3), that the liquidation committee ceases to exist at the end of the meeting”.

(3) In rule 4.43(2) omit “Section 138 or”.

(4) In rule 4.43(4) omit “at least 3 and not more than 5” and substitute “3 or 5”.

Obligations of liquidator to committee

61.  Apply rule 4.44 of the 1986 Rules.

Meetings of the committee

62.  Apply rule 4.45 of the 1986 Rules.

The chair at meetings

63.  Apply rule 4.46 of the 1986 Rules.

Quorum

64.  Apply rule 4.47 of the 1986 Rules.

Committee members’ representatives

65.  Apply rule 4.48 of the 1986 Rules(4).

Resignation

66.  Apply rule 4.49 of the 1986 Rules.

Termination of membership

67.  Apply rule 4.50 of the 1986 Rules.

Removal

68.  Apply rule 4.51 of the 1986 Rules.

Vacancy (creditor members)

69.  Apply rule 4.52 of the 1986 Rules.

Vacancy (contributory members)

70.  Apply rule 4.53 of the 1986 Rules(5).

Voting rights and resolutions

71.  Apply rule 4.54 of the 1986 Rules.

Resolutions by post

72.—(1) Apply rule 4.55 of the 1986 Rules(6).

(2) Ignore rule 4.55(3) and (4).

Liquidator’s reports

73.—(1) Apply rule 4.56 of the 1986 Rules.

(2) At the end of rule 4.56(1) insert “but does not apply to the FSCS”.

Expenses of members, etc

74.  Apply rule 4.57(1) of the 1986 Rules.

Dealings by committee-members and others

75.  Apply rule 4.58 of the 1986 Rules.

Composition of committee when creditors paid in full

76.—(1) Apply rule 4.59 of the 1986 Rules(7).

(2) For rule 4.59(4) substitute “The members of the liquidation committee will cease to be members at the end of the final meeting held under rule 44 of the 2009 Rules.”

Formal defects

77.  Apply rule 4.59A of the 1986 Rules(8).

(1)

Rule 4.41 was amended by paragraph 23 of Schedule 1(I) to S.I. 1987/1921.

(2)

Rule 4.42 was amended by paragraph 24 of Schedule 1(I) to S.I. 1987/1921, and paragraph 141(17) of Schedule 2(II) to S.I. 1999/1820. Rule 4.42(3) refers to section 375 of the Companies Act 1985 (c.6). That section was replaced by section 323 of the Companies Act 2006 (c.46) with effect from 1st October 2007.

(3)

Rule 4.43 was amended by paragraph 25 of Schedule 1(I) to S.I. 1987/1921.

(4)

Rule 4.48 was amended by paragraph 26 of Schedule 1(I) to S.I. 1987/1921. Rule 4.48 of the 1986 Rules refers to section 375 of the Companies Act 1985 (c.6). That section was replaced by section 323 of the Companies Act 2006 (c.46) with effect from 1st October 2007.

(5)

Rule 4.53 was amended by paragraph 27 of Schedule 1(I) to S.I. 1987/1921.

(6)

Rule 4.55 was amended by paragraph 28 of Schedule 1(I) to S.I. 1987/1921.

(7)

Rule 4.59 was amended by paragraph 141(18) of Schedule 2(II) to S.I. 1999/1820.

(8)

Rule 4.59A was inserted by paragraph 29 of Schedule 1(I) to S.I. 1987/1921.