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The Insolvency (Scotland) (Receivership and Winding up) (Amendment) Rules 2021

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EXPLANATORY NOTE

(This note is not part of the Rules)

These Rules amend the Insolvency (Scotland) (Receivership and Winding Up) Rules 2018 (S.S.I. 2018/347) in connection with the introduction of the new moratorium procedure (“the moratorium”) in Part A1 of the Insolvency Act 1986 (c. 45) (“the 1986 Act”).

Section 1 of the Corporate Insolvency and Governance Act 2020 (c.12) (“CIGA 2020”) inserted a new Part A1 into the 1986 Act. Part A1 provides for a moratorium which, in summary, enables an eligible company to obtain certain protections from creditors. Schedule 4 to CIGA 2020 contains temporary rules for the purpose of the moratorium. These temporary rules were enacted so that the moratorium could be given immediate effect pending the making of these Rules.

These Rules are in two Parts. Part 1 contains introductory provisions dealing with the coming into force and territorial extent of the Rules. Rules 4 and 5 make saving provision for cases where a moratorium (or a moratorium under Schedule A1 to the 1986 Act) is in effect (or, in certain cases, an application for a moratorium has been made) at the time these Rules come into force. If that is the position then the amendments made by these Rules do not apply; instead the rules that apply at the time that the moratorium first came into effect (or when the application for the moratorium was made) continue to apply for the lifetime of that moratorium.

Part 2 of these Rules makes consequential amendments to Parts 4, 5 and 7 of the 2018 Rules. These consequential amendments deal with the notifications that must be given where a company enters a winding up during a moratorium procedure and the identification of debts incurred during a moratorium which are required under the 1986 Act to have priority in subsequent winding up.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. An explanatory memorandum has been published alongside this instrument at www.legislation.gov.uk.

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