Preparatory steps

Introductory Provisions Rules 0.1 to 0.7

Interpretation and application

2.028

Notification and advertisement of administrator’s appointment

Ignore paragraph (2)(a), (b) and (e).

2.029

Notice requiring statement of affairs

2.030

Verification and filing

2.031

Limited disclosure

On an application for disclosure under paragraph (4) any of the following may appear and be heard, or make written representations—

1. a

   the bank administrator,

2. b

   the Bank of England,

3. c

   the FSA, and

4. d

   the FSCS.

2.032

Release from duty to submit statement of affairs; extension of time

On an application under paragraph (2) for release or extension of time any of the following may appear and be heard, or make written representations—

1. a

   the bank administrator,

2. b

   the Bank of England,

3. c

   the FSA, and

4. d

   the FSCS.

2.033

Expenses of statement of affairs

Bank administrator’s proposals and creditors’ meetings

2.034

Administrator’s proposals

Rule 2.034 is not applied – but equivalent provision is made by Part 3 of these Rules.

2.035

Meetings to consider administrator’s proposals

1. 1

   Rule 2.035 applies in the Objective 2 Stage.

2. 2

   The FSA and the FSCS are added to the list in paragraph (2) of persons entitled to notice.

2.036

Creditors’ meetings generally

The FSA and FSCS are added to the list in paragraph (3) of persons to whose convenience the bank administrator is to have regard.

2.037

Chairman at meetings

2.038

Meeting requisitioned by creditors

Treat the reference to the administrator’s statement of proposals as a reference to the bank administrator’s statement of proposals in accordance with Rule 29.

2.039

Entitlement to vote

2.040

Admission and rejection of claims

2.041

Secured creditors

2.042

Holders of negotiable instruments

2.043

Hire-purchase, conditional sale and chattel leasing agreements

2.044

Resolutions

2.045

Minutes

2.046

Revision of the administrator’s proposals

In paragraph (2)(c) ignore the reference to the person making the appointment.

2.047

Notice to creditors

2.048

Reports to creditors

Rule 2.048 is not applied – but equivalent provision is made by Part 3 of these Rules.

2.049

Correspondence instead of creditors’ meetings

2.050

Venue and conduct of company meeting

Creditors’ committee

2.051

Constitution of committee

(A creditors’ committee cannot be established until the Objective 2 Stage – see the modifications for the application of paragraphs 51 to 59 of Schedule B1 to the Order in Table 1 in section 145 of the 2009 Act.)

2.052

Formalities of establishment

2.053

Functions and meetings of the committee

2.054

The chairman at meetings

2.055

Quorum

2.056

Committee-members’ representatives

2.057

Resignation

2.058

Termination of membership

2.059

Removal

2.060

Vacancies

2.061

Procedure at meetings

2.062

Resolutions of creditors’ committee by post

2.063

Information from administrator

2.064

Expenses of members

2.065

Members dealing with the company

In respect of any application to set aside a transaction under paragraph (3)—

1. a

   notice of the application must be given to the FSA and the FSCS, and

2. b

   the FSA and the FSCS may appear and be heard.

2.066

Formal defects

Process of administration

2.067

Application to court to dispose of charged property

If an application is made during the Objective 1 Stage, then in addition to the requirements of Rule 2.067—

1. a

   the bank administrator must notify the Bank of England of the time and place of the hearing,

2. b

   the Bank of England may appear, and

3. c

   if an order is made the bank administrator must send a copy to the Bank of England as soon as is reasonably practicable.

2.068

Priority of expenses of administration

In addition to the matters listed in Rule 2.068(1), expenses in connection with provisional bank administration are payable in the following order of priority—

1. a

   the cost of any security provided by the provisional bank administrator takes priority equally with security provided by the bank administrator, and

2. b

   the remuneration of the provisional bank administrator ranks next, and

3. c

   any deposit lodged on an application for the appointment of a provisional bank administrator ranks next.

2.069

Distributions to creditors: introduction

(Distributions in the case of bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act and during the Objective 1 Stage require the Bank of England’s consent – see the modification for the application of paragraph 66 of Schedule B1 to the Order in Table 1 in section 145 of the 2009 Act.)

2.070

Debts of insolvent company to rank equally

2.071

Dividends: supplementary

2.072

Division of unsold assets

2.073

Proving a debt

2.074

Claim established by a witness statement

2.075

Costs of proving

2.076

Administrator to allow inspection of proofs

2.077

New administrator: transfer of proofs

2.078

Admission and rejection of proofs for dividend

2.079

Appeal against decision on proof

In respect of any application under Rule 2.079(1) or (3)—

1. a

   notice of the application must be given to the FSA and the FSCS and, during the Objective 1 Stage, the Bank of England, and

2. b

   the FSA and the FSCS, and the Bank of England during the Objective 1 Stage, may appear and be heard.

2.080

Withdrawal or variation of proof

2.081

Expunging of proof by the court

In respect of any application under Rule 2.081(1)(b)—

1. a

   notice of the application must be given to the FSA and the FSCS and, during the Objective 1 Stage, the Bank of England, and

2. b

   the FSA and the FSCS, and the Bank of England during the Objective 1 Stage, may appear and be heard.

2.082

Estimate of quantum of claims

2.083

Negotiable instruments, &c.

2.084

Secured creditors

2.085

Discounts

2.086

Mutual credit and set-off

2.087

Debt in foreign currency

2.088

Periodical payments

2.089

Interest

2.090

Debt payable in future

2.091

Value of security

2.092

Surrender for non-disclosure

2.093

Redemption by administrator

2.094

Test of security’s value

2.095

Realisation of security by creditor

2.096

Notice of proposed distribution

The following are added to the list of those entitled to receive notice under Rule 2.096(2)(a)—

1. a

   the FSA,

2. b

   the FSCS and

3. c

   during the Objective 1 Stage of a bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act, the Bank of England.

2.097

Admission or rejection of proofs

2.098

Declaration of dividend

2.099

Notice of declaration of dividend

1. 1

   The following are added to the list of those entitled to receive notice under Rule 2.099(1)—

   1. a

      the FSA,

   2. b

      the FSCS, and

   3. c

      during the Objective 1 Stage of a bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act, the Bank of England.

2. 2

   In the case of bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act and during the Objective 1 Stage, the particulars required by rule 2.099(2) include details of any payment made from a scheme under a resolution fund order.

2.100

Payment of dividends, &c.

2.101

Notice of no dividend or no further dividend

The bank administrator must copy any notice under Rule 2.101 to—

1. a

   the FSA,

2. b

   the FSCS, and

3. c

   the Bank of England, in a case where it consented to a distribution under Rule 2.069 (as applied ).

2.102

Proof altered after payment of dividend

2.103

Secured creditors

2.104

Disqualification from dividend

In respect of any application for disqualification under Rule 2.104—

1. a

   notice of the application must be given to the FSA and the FSCS, and

2. b

   the FSA and the FSCS may appear and be heard.

2.105

Assignment of right to dividend

2.106

Debt payable in future

The “relevant date” is the date of the bank administration order.

The bank administrator

2.107

Fixing of remuneration

1. 1

   In the Objective 1 Stage the Bank of England shall fix the bank administrator’s remuneration in accordance with Rule 2.107(2).

2. 2

   In the Objective 2 Stage, Rule 2.107 applies (but pending action under paragraphs (3) or (5) arrangements established by the Bank of England in the Objective 1 Stage shall continue to apply.

2.108

Recourse to meeting of creditors

2.109

Recourse to the court

1. 1

   In respect of remuneration fixed by the Bank of England—

   1. a

      Rule 2.109 applies as if references to the creditors’ committee were references to the Bank of England, and

   2. b

      the court shall have regard to Objective 1.

2. 2

   In respect of any application under Rule 2.109—

   1. a

      notice of the application must be given to the FSA and the FSCS, and

   2. b

      the FSA and the FSCS may appear and be heard.

2.110

Creditors’ claim that remuneration is excessive

Rule 2.110 applies only during the Objective 2 Stage.

4.134B and

Schedule 4

Remuneration where assets realised on behalf of chargeholder

Ending administration

2.111

Final progress report

1. 1

   The reference to Rule 2.048 is to be treated as a reference to Rule 35.

2. 2

   In the case of bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act the final progress report—

   1. a

      shall not be made until the bank administrator is satisfied that any payment likely to be made to the bank from a scheme under a resolution fund order has been made, and

   2. b

      shall state whether any payment has been received and, if so, its amount

2.114

Notice of end of administration

Rule 2.114 is not applied – but equivalent provision is made by Part 3 of these Rules.

2.115

Application to court by administrator

The reference to paragraph 80 of Schedule B1 to the Order is to be treated as a reference to paragraph 81 (as applied by section 153(2) of the 2009 Act).

2.117

Notification to registrar of companies and Enforcement of Judgements Office

2.119

Moving from administration to dissolution

Rule 2.119 is not applied – but equivalent provision is made by Part 3 of these Rules.

Replacing bank administrator

2.120

Grounds for resignation

During the Objective 1 Stage the Bank of England’s consent, as well as the court’s permission, is required for resignation under paragraph (2).

2.121

Notice of intention to resign

The Bank of England, the FSA and the FSCS are added to the list of those entitled to notice under paragraph (1).

2.122

Notice of resignation

2.123

Application to court to remove administrator

(An application may be made during the Objective 1 Stage only with the Bank of England’s consent – see the modifications for the application of paragraph 89 of Schedule B1 to the Order in Table 1 in section 145 of the 2009 Act..)

1. 1

   An application must state either—

   1. a

      that the Bank of England has consented to its being made, or

   2. b

      that the Objective 1 Stage has ended.

2. 2

   The FSA and the FSCS are added to the list of those entitled to notice under paragraph (2).

2.124

Notice of vacation of office on ceasing to be qualified

2.125

Death of administrator

2.126

Application to replace

Rule 2.126 is applied during the Objective 2 Stage only (and ignoring references to paragraph 96 of Schedule B1 to the Order).

For equivalent provision about application for removal by the Bank of England during the Objective 1 Stage (in accordance with the modifications for the application of paragraph 92 of Schedule B1 to the Order in Table 1 in section 145 of the 2009 Act) see Part 3 of these Rules.

2.127

Notification and advertisement of replacement

2.128

Notification and advertisement of appointment of joint administrator

2.129

Notice to registrar of companies of replacement or addition

2.130

Duties on vacating office

Provisional bank administrator (see application of Article 115 of the Order in Table 2 in section 145 of the 2009Act )

4.027

Appointment

Rule 4.027 is not applied – but equivalent provision is made by Part 3 of these Rules.

4.028

Notice of appointment

Rule 4.028 is not applied – but equivalent provision is made by Part 3 of these Rules.

4.029

Order of appointment

Rule 4.029 is not applied – but equivalent provision is made by Part 3 of these Rules.

4.031

Security

4.032

Failure to give or keep security

4.033

Remuneration

Ignore paragraph (5).

4.034

Termination of appointment

An application for termination may be made by—

1. a

   the provisional bank liquidator, or

2. b

   the Bank of England.

Disclaimer

4.197

Notice of disclaimer

(In the case of bank administration following transfer to a bridge bank under section 12(2) of the 2009Act notice may be given during the Objective 1 Stage only with the Bank of England’s consent – see the modifications for the application of Article 152 of the Order in Table 2 in section 145 of the 2009Act.)

4.198

Communication to interested persons

4.199

Additional notices

4.200

Duty to keep court informed

4.201

Application by interested party

4.202

Interest in property to be declared on request

4.203

Disclaimer presumed valid and effective

4.204

Application for exercise of court’s powers under Article 155 of the Order

(Article 155 is applied by Table 2 in section 145 of the Banking Act 2009.)

Court procedure and practice

7.05

Application of Chapter 1 of Part 7

Chapter 1 does not apply to an application for a bank administration order (which is addressed in Part 2 of these Rules).

7.06

Interpretation

7.07

Form and contents of application

7.07A

Application to disapply Article 150A of the Order

7.08

Filing and service of application

7.08A

Notice of application under Article 150A of the Order

7.09

Other hearings ex parte

7.10

Use of witness statement evidence

7.11

Filing and service of witness statements

7.12

Use of reports

7.13

Adjournment of hearings; directions

7.14

Nomination and appointment of shorthand writers

7.16

Remuneration of shorthand writers

7.19

Enforcement of court orders

7.20

Orders enforcing compliance with Rules

7.21

Warrants

7.22

Warrants under Article 200

7.24

Court records

7.25

Inspection of records

7.26

File of court proceedings

7.27

Right to inspect court file

Rule 7.27 is not applied – but equivalent provision is made in Part 4 of these Rules.

7.28

Filing of Gazette notices and advertisements

7.29

Costs: application of the Supreme Court Rules

7.30

Requirement to assess costs by the detailed procedure

7.32

Procedure where detailed assessment required

7.34

Costs paid otherwise than out of the assets of the insolvent estate

7.35

Award of costs against responsible insolvency practitioner

7.36

Application for costs

7.37

Costs and expenses of witnesses

7.38

Persons who lack capacity to manage their affairs: introductory

7.39

Appointment of another person to act

7.40

Witness statement in support of application

7.41

Services of notices following appointment

7.42

Appeals and reviews of court orders from Master

7.44

Procedure on appeal

7.45

Principal court rules and practice to apply

7.47

Right of attendance

7.54

Insolvency practitioner’s solicitor

7.50

Formal defects

7.51

Restriction on concurrent proceedings and remedies

7.52

Witness statements

7.53

Security in court

7.54

Further information and disclosure

7.56

Office copies of documents

Proxies

8.1

Definition of proxy

8.2

Issue and use of forms

8.3

Use of proxies at meetings

8.4

Retention of proxies

8.5

Right of inspection of proxies

8.6

Proxy-holder with financial interest

8.7

Company representation

(The reference to Article 383 of the Companies (Northern Ireland) Order 1986 is now a reference to section 323 of the Companies Act 2006.)

Examination of persons

9.1

Preliminary

1. 1

   Part 9 applies to applications under Article 200 of the Order (inquiry into company’s dealings) as applied by Table 2 in section 145 of the Banking Act 2009.

2. 2

   Treat a reference to “the insolvent” as a reference to the bank.

9.2

Form and contents of application

9.3

Order for examination

9.4

Procedure for examination

9.5

Record of examination

9.6

Costs of proceedings

Declaration and payment of dividend

11.01

Preliminary

11.02

Notice of intended dividend

11.03

Final admission or rejection of proofs

11.04

Postponement or cancellation of dividend

11.05

Decision to declare dividend

11.06

Notice of declaration

11.07

Notice of no dividend or no further dividend

11.08

Proof altered after payment of dividend

11.09

Secured creditors

11.10

Disqualification from dividend

11.11

Assignment of right to dividend

11.12

Preferential creditors

11.13

Debt payable in future

The “relevant date” is the date of the bank administration order.

Miscellaneous and general

12.01

Regulation of specified administrative matters

A reference to the Department includes a reference to the Treasury.

12.02

Costs and expenses

12.03

Provable debts

12.04

Notices

12.5

Quorum at meetings

(The reference to Article 383 of the Companies (Northern Ireland) Order 1986 is now a reference to section 323 of the Companies Act 2006.)

12.06

Evidence of proceedings at meeting

12.07

Documents issued by Department

12.08

Forms

(See Rule 7.)

12.09

Insolvency practitioner’s security

12.10

Time

12.11

Service by post

(Rule 12.11 applies subject to express provision about service made in these Rules.)

12.12

Service and notice: general

12.13

Service outside jurisdiction

12.14

Confidentiality of documents

12.15

Notices sent simultaneously to same person

12.16

Right to copy documents

12.17

Charge for copy documents

12.18

Non-receipt of notice of meeting

12.19

Right to have list of creditors

12.20

False claim of status as creditor

12.21

Gazette

12.22 and Schedule 3

Punishment of offences

12.23

Notice of order under Article 150A of the Order