The Investment Bank Special Administration (England and Wales) Rules 2011

1. Introductory Text

2. PART 1 Introductory Provisions

   1. 1. Citation

   2. 2. Commencement

   3. 3. Extent

   4. 4. Interpretation

   5. 5. Application of rules

3. PART 2 Application for Order

   1. CHAPTER 1 Application for special administration order

      1. 6. Content of application

      2. 7. Statement of proposed administrator

      3. 8. Witness statement in support of application

      4. 9. Filing of application

      5. 10. Service of application

      6. 11. Proof of service

      7. 12. Further notification

      8. 13. The hearing

      9. 14. The special administration order

      10. 15. Costs

      11. 16. Notice of special administration order

   2. CHAPTER 2 Application for a special administration (bank insolvency) order

      1. 17. Filing of application

      2. 18. Service of application

      3. 19. Proof of service

      4. 20. Other persons to receive copy of application

      5. 21. Verification of application

      6. 22. Persons entitled to copy of application

      7. 23. Certificate of compliance

      8. 24. Leave for the applicant to withdraw

      9. 25. Witness statement in opposition

      10. 26. Making, transmission and advertisement of order

      11. 27. Special administration (bank insolvency) order

      12. 28. Authentication of administrator’s appointment

      13. 29. Duties of Objective A committee

      14. 30. Appointment of person under section 135

      15. 31. Notice of appointment

      16. 32. Order of appointment

      17. 33. Security

      18. 34. Failure to give or keep up security

      19. 35. Remuneration

      20. 36. Termination of appointment

   3. CHAPTER 3 Application for a special administration (bank administration) order

      1. 37. Content of application

      2. 38. Statement of proposed administrator

      3. 39. Bank of England witness statement

      4. 40. Filing

      5. 41. Service

      6. 42. Other notification

      7. 43. Venue

      8. 44. Hearing

      9. 45. Special administration (bank administration) order

      10. 46. Costs

      11. 47. Notice of order

      12. 48. Remuneration of the administrator

      13. 49. Appointment of person under section 135

      14. 50. Order of appointment

4. PART 3 Process of Special Administration

   1. CHAPTER 1 Notice of appointment and statement of affairs

      1. 51. Notification and advertisement of administrator’s appointment

      2. 52. Notice requiring statement of affairs

      3. 53. Details of the client assets held by the investment bank

      4. 54. Verification and filing

      5. 55. Limited disclosure

      6. 56. Release from duty to submit statement of affairs

      7. 57. Expenses of statement of affairs

      8. 58. Submission of accounts

   2. CHAPTER 2 Statement of proposals

      1. 59. Administrator’s proposals

      2. 60. Limited disclosure of the statement of proposals

   3. CHAPTER 3 Initial meeting to consider proposals

      1. 61. Initial meeting

      2. 62. Notice to officers

      3. 63. Business of the initial meeting

      4. 64. Adjournment of meeting to approve the statement of proposals

      5. 65. Revision of the statement of proposals

      6. 66. Meeting to approve the revised statement of proposals

      7. 67. Notice to creditors and clients

   4. CHAPTER 4 Meetings generally

      1. 68. Meetings generally

      2. 69. Venue

      3. 70. Notice of meeting by individual notice: when and where sent

      4. 71. Notice of meeting by individual notice: content and accompanying documents

      5. 72. Notice of meeting by advertisement only

      6. 73. Content of notice for meetings

      7. 74. Gazetting and advertisement of meetings

      8. 75. Non-receipt of notice of meeting

      9. 76. Requisition of meetings

      10. 77. Expenses of requisitioned meetings

      11. 78. Quorum at meetings

      12. 79. Chair at meetings

      13. 80. Adjournment by chair

      14. 81. Adjournment in absence of chair

      15. 82. Claims, proofs and proxies in adjournment

      16. 83. Suspension

      17. 84. Venue and conduct of company meetings

   5. CHAPTER 5 Entitlement to vote at meetings

      1. 85. Entitlement to vote (creditors)

      2. 86. FSCS and voting rights

      3. 87. Calculation of voting rights (creditors)

      4. 88. Calculation of voting rights: special cases (creditors)

      5. 89. Procedure for admitting creditors’ claims for voting

      6. 90. Entitlement to vote (clients)

      7. 91. Calculation of voting rights (clients)

      8. 92. Procedure for admitting clients’ claims for voting

      9. 93. Voting at meetings of creditors and clients

      10. 94. Requisite majorities

      11. 95. Requisite majorities at contributories’ meetings

      12. 96. Appeals against decisions under this Chapter

   6. CHAPTER 6 Correspondence and remote attendance

      1. 97. Correspondence instead of meetings

      2. 98. Remote attendance at meetings conducted in accordance with section 246A

      3. 99. Action where person excluded

      4. 100. Indication to excluded person

      5. 101. Complaint

   7. CHAPTER 7 Records, returns and reports

      1. 102. Minutes

      2. 103. Returns or reports of meetings

   8. CHAPTER 8 The creditors’ committee

      1. 104. Constitution of committee

      2. 105. Formalities of establishment

      3. 106. Functions and meetings of the committee

      4. 107. The chair at meetings

      5. 108. Quorum

      6. 109. Committee members’ representatives

      7. 110. Resignation

      8. 111. Termination of membership

      9. 112. Removal

      10. 113. Vacancies

      11. 114. Procedure at meetings

      12. 115. Remote attendance at meetings of creditors’ committee

      13. 116. Procedure for requests that a place for a meeting should be specified

      14. 117. Resolutions of creditors’ committees by post

      15. 118. Information from administrator

      16. 119. Expenses of members

      17. 120. Members dealing with the investment bank

      18. 121. Formal defects

   9. CHAPTER 9 Progress reports

      1. 122. Content of progress report

      2. 123. Sending progress report

   10. CHAPTER 10 Proxies and corporate representation

       1. 124. Definition of proxy

       2. 125. Issue and use of forms

       3. 126. Use of proxies at meetings

       4. 127. Retention of proxies

       5. 128. Right of inspection

       6. 129. Proxy holder with financial interest

       7. 130. Company representation

   11. CHAPTER 11 Disposal of charged property

       1. 131. Application to dispose of charged property

       2. 132. Application in a special administration (bank administration)

5. PART 4 Expenses of the special administration

   1. 133. Expenses of voluntary arrangement

   2. 134. Expenses to be paid out of the investment bank’s assets

   3. 135. Expenses to be paid out of the client assets

   4. 136. Pre-administration costs

   5. 137. Allocation of expenses to be paid from client assets

6. PART 5 Objective 1

   1. CHAPTER 1 Setting a bar date

      1. 138. Notice of the bar date

      2. 139. Content of claim for client assets

      3. 140. Content of claim in respect of security interest

      4. 141. Costs of making a claim

      5. 142. New administrator appointed

   2. CHAPTER 2 Further notification

      1. 143. Notifying potential claimants after bar date has passed

   3. CHAPTER 3 Distribution plan

      1. 144. Distribution plan

      2. 145. Approval by the creditors’ committee

      3. 146. Approval by the court

      4. 147. Treatment of late claimants

7. PART 6 Distributions to creditors

   1. CHAPTER 1 Application

      1. 148. Distribution to creditors

      2. 149. Debts of investment bank to rank equally

      3. 150. Supplementary provisions as to dividend

      4. 151. Division of unsold assets

   2. CHAPTER 2 Proofs of debts

      1. 152. Proving a debt

      2. 153. Costs of proving

      3. 154. Administrator to allow inspection of proofs

      4. 155. New administrator appointed

      5. 156. Admission and rejection of proofs for dividend

      6. 157. Appeal against decision on proof

      7. 158. Withdrawal or variation of proof

      8. 159. Expunging of proof by the court

   3. CHAPTER 3 Quantification of claims

      1. 160. Estimate of quantum

      2. 161. Negotiable instruments

      3. 162. Secured creditors

      4. 163. Discounts

      5. 164. Mutual credit and set-off

      6. 165. Application of rule 164 in a special administration (bank administration) and special administration (bank insolvency)

      7. 166. Debt in a foreign currency

      8. 167. Payments of a periodical nature

      9. 168. Interest

      10. 169. Debt payable at a future time

      11. 170. Value of security

      12. 171. Surrender for non-disclosure

      13. 172. Redemption by administrator

      14. 173. Test of security’s value

      15. 174. Realisation of security by creditor

      16. 175. Notice of proposed distribution

      17. 176. Admission or rejection of proofs

      18. 177. Postponement or cancellation of dividend

      19. 178. Declaration of a dividend

      20. 179. Notice of declaration of a dividend

      21. 180. Payments of dividend and related matters

      22. 181. Notice of no dividend or no further dividend

      23. 182. Proof altered after payment of dividend

      24. 183. Secured creditors

      25. 184. Disqualification from dividend

      26. 185. Assignment of right to dividend

      27. 186. Debt payable at a future time

8. PART 7 The Administrator

   1. CHAPTER 1 Powers of the administrator

      1. 187. General powers

      2. 188. Powers of disclaimer

      3. 189. Communication of disclaimer to persons interested

      4. 190. Additional notices

      5. 191. Records

      6. 192. Application by interested party

      7. 193. Interest in property to be declared on request

      8. 194. Disclaimer presumed valid and effective

      9. 195. Application for the exercise of court’s powers under section 181

   2. CHAPTER 2 Fixing of remuneration

      1. 196. Fixing of remuneration

      2. 197. Remuneration (special administration (bank insolvency))

      3. 198. Remuneration (special administration (bank administration)

      4. 199. Recourse to meeting of creditors and clients

      5. 200. Recourse to the court

      6. 201. Creditors’ and clients’ request for further information

      7. 202. Claim that remuneration is excessive

      8. 203. Review of remuneration

      9. 204. Remuneration of new administrator

      10. 205. Apportionment of set fee remuneration

   3. CHAPTER 3 Replacing the administrator

      1. 206. Grounds for resignation

      2. 207. Notice of intention to resign

      3. 208. Notice of resignation

      4. 209. Application to court to remove administrator from office

      5. 210. Notice of vacation of office when administrator ceases to be qualified

      6. 211. Administrator deceased

      7. 212. Application to replace (special administration)

      8. 213. Application to replace (special administration (bank insolvency))

      9. 214. Application to replace (special administration (bank administration))

      10. 215. Notification and advertisement of appointment of replacement administrator

      11. 216. Notification and advertisement of appointment of joint administrator

      12. 217. Additional joint administrator (special administration (bank administration))

      13. 218. Notification of new administrator

      14. 219. Administrator’s duties on vacating office

9. PART 8 End of special administration

   1. 220. Final progress reports

   2. 221. Application to court by administrator

   3. 222. Application to court by creditor

   4. 223. Notification by administrator of court order

   5. 224. Moving from administration to dissolution

10. PART 9 Court procedure and practice

    1. CHAPTER 1 Application of the CPR

       1. 225. Principal court rules and practice to apply

    2. CHAPTER 2 The Court

       1. 226. Shorthand writers – nomination, appointment, remuneration and costs

       2. 227. Court file

       3. 228. Office copies of documents

       4. 229. Payments into court

    3. CHAPTER 3 Obtaining information and evidence

       1. 230. Further information and disclosure

       2. 231. Witness statements – general

       3. 232. Filing and service of witness statements

       4. 233. Evidence provided by the administrator

    4. CHAPTER 4 Service of court documents

       1. 234. Application of Chapter

       2. 235. Service of court documents within the jurisdiction

       3. 236. Service of court documents outside jurisdiction

       4. 237. Service of orders staying proceedings

       5. 238. Service on joint office-holders

    5. CHAPTER 5 Applications to court - general

       1. 239. Application of Chapter

       2. 240. Form and contents of application

       3. 241. Filing and service of application

       4. 242. Directions

       5. 243. Hearings without notice

       6. 244. Hearing of application

       7. 245. Adjournment of the hearing of an application

    6. CHAPTER 6 Applications to the court under section 176A

       1. 246. Application of Chapter

       2. 247. Applications under section 176A(5) to disapply section 176A

       3. 248. Notice of application under section 176A(5)

       4. 249. Notice of an order under section 176A(5)

    7. CHAPTER 7 Applications for an order under section 236

       1. 250. Application of following rules

       2. 251. Form and contents of application

       3. 252. Order for examination etc.

       4. 253. Procedure for examination

       5. 254. Record of examination

       6. 255. Costs of proceedings under section 236

    8. CHAPTER 8 People who lack capacity to manage their affairs etc.

       1. 256. Application of Chapter 8

       2. 257. Appointment of another person to act

       3. 258. Witness statement in support of application

       4. 259. Service of notices following appointment

    9. CHAPTER 9 Formal defects

       1. 260. Formal defects

    10. CHAPTER 10 Costs

        1. 261. Application of Chapter 10

        2. 262. Requirement to assess costs by the detailed procedure

        3. 263. Procedure where detailed assessment is required

        4. 264. Costs of officers charged with execution of writs or other process

        5. 265. Costs paid otherwise than out of the investment bank’s estate

        6. 266. Award of costs against the administrator

        7. 267. Applications for costs

        8. 268. Costs and expenses of witnesses

        9. 269. Final costs certificate

    11. CHAPTER 11 Enforcement procedures

        1. 270. Enforcement of court orders

        2. 271. Orders enforcing compliance with the Rules

        3. 272. Warrants (general provisions)

        4. 273. Warrants under section 236

    12. CHAPTER 12 Appeals

        1. 274. Application of Chapter 12

        2. 275. Appeals and reviews of court orders

        3. 276. Procedure on appeal

        4. 277. Appeal against decision of the Secretary of State

11. PART 10 Prohibited names

    1. 278. Preliminary

    2. 279. Application for permission under section 216(3)

    3. 280. First excepted case

    4. 281. Second excepted case

    5. 282. Third excepted case

12. PART 11 Provisions of general effect

    1. CHAPTER 1 Miscellaneous and general

       1. 283. Costs, expenses etc

       2. 284. Provable debts

       3. 285. False claim of status as creditor, etc

       4. 286. Punishment of offences

    2. CHAPTER 2 The giving of notice and the supply of documents

       1. 287. Application

       2. 288. Personal delivery

       3. 289. Postal delivery of documents

       4. 290. Notice etc to solicitors

    3. CHAPTER 3 The giving of notice and the supply of documents to or by the administrator

       1. 291. Application

       2. 292. The form

       3. 293. Proof of sending

       4. 294. Authentication

       5. 295. Electronic delivery - general

       6. 296. Electronic delivery by administrator

       7. 297. Use of websites by administrator

       8. 298. Special provision on account of expense as to website use

       9. 299. Electronic delivery of special administration documents to court

       10. 300. Notice etc to joint administrators

       11. 301. Execution overtaken by judgment debtor’s insolvency

       12. 302. Notice to enforcement officers

       13. 303. Electronic submission of information

       14. 304. Electronic submission of information where rule 303 does not apply

       15. 305. Contents of notices to be gazetted

       16. 306. Gazette notices relating to companies

       17. 307. Omission of unobtainable information

       18. 308. The Gazette – general

       19. 309. Notices otherwise advertised under the Regulations or Rules

       20. 310. Non-Gazette notices

       21. 311. Non-Gazette notices – other provisions

    4. CHAPTER 4 Notifications to the registrar of companies

       1. 312. Application of Chapter 4

       2. 313. Information to be contained in all notifications to the registrar

       3. 314. Notification relating to the administrator

       4. 315. Notifications relating to documents

       5. 316. Notifications relating to court orders

       6. 317. Notifications relating to other events

       7. 318. Notifications of more than one nature

       8. 319. Notifications made to other persons at the same time

    5. CHAPTER 5 Further provisions concerning documents

       1. 320. Confidentiality of documents – grounds for refusing inspection

       2. 321. Right to copy documents

       3. 322. Charges for copy documents

       4. 323. Right to have list of creditors

    6. CHAPTER 6 Time limits and security

       1. 324. Time limits

       2. 325. Administrator’s security

    7. CHAPTER 7 Transfer of proceedings

       1. 326. Proceedings commenced in the wrong court

       2. 327. Proceedings other than special administration commenced

13. PART 12 General interpretation and application

    1. 328. Introduction

    2. 329. “The court”; “the registrar”

    3. 330. Venue

    4. 331. Insolvent estate

    5. 332. The appropriate fee

    6. 333. “Debt”; “liability”

    7. 334. Application of the 1986 Act and the Company Directors Disqualification Act

14. Signature

15. 1. SCHEDULE

       Punishment of offences

16. Explanatory Note