Introductory Provisions 0.1 to 0.7

Interpretation and application

2.028

Notification and advertisement of administrator’s appointment

1. 1

   In paragraph (1), for “newspaper”, substitute “manner”.

2. 2

   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 special administrator;

2. b

   the Bank of England; and

3. c

   the FCA and where relevant the PRA.

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 special administrator;

2. b

   the Bank of England; and

3. c

   the FCA and where relevant the PRA.

2.033

Expenses of statement of affairs

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 FCA, and where relevant the PRA, and the FSCS are added to the list in paragraph (2) of persons entitled to notice.

2.036

Creditors’ meetings generally

The FCA, and where relevant the PRA, and FSCS are added to the list in paragraph (3) of persons to whose convenience the special 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 special 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

In paragraph (5) the reference to a general meeting of the company summoned under the company’s articles of association, and in accordance with the applicable provisions of the Companies Act, has effect as a reference to a general meeting of the society summoned under the society’s rules, and in accordance with the applicable provisions of the Building Societies Act.

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 1989 Order in Table 1 in section 145 of the Banking Act.)

2.052

Formalities of establishment

2.053

Functions and meetings of the committee

2.054

The chair 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 society

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

1. a

   notice of the application shall be given to the FCA and where relevant the PRA; and

2. b

   the FCA and where relevant the PRA may appear and be heard.

2.066

Formal defects

2.067

Disposal 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 special administrator shall 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 special administrator shall send a copy to the Bank of England as soon as is reasonably practicable.

2.068

Expenses of the administration

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

1. a

   the cost of any security provided by the provisional special administrator takes priority equally with security provided by the special administrator; and

2. b

   the remuneration of the provisional special administrator ranks next; and

3. c

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

2.069

Distributions to creditors: introduction

In paragraphs (1) and (2) references to creditors include references to shareholding members.

(Distributions in the case of building society special administration following transfer to a bridge bank under section 12(2) of the Banking 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 1989 Order in Table 1 in section 145 of the Banking Act.)22

2.070

Debts of insolvent company to rank equally

“Debts” do not include amounts owing from the society to a member in respect of shares.

2.071

Supplementary provisions as to dividend

2.072

Division of unsold assets

2.073

Proving a debt

2.074

Claim established by affidavit

2.075

Costs of proving

2.076

Administrator to allow inspection of proofs

2.077

New administrator appointed

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 shall be given to the FCA and where relevant the PRA and, during the Objective 1 Stage, the Bank of England; and

2. b

   the FCA and where relevant the PRA, 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 shall be given to the FCA and where relevant the PRA and, during the Objective 1 Stage, the Bank of England; and

2. b

   the FCA and where relevant the PRA, and the Bank of England during the Objective 1 Stage, may appear and be heard.

2.082

Estimate of quantum

2.083

Negotiable instruments, etc.

2.084

Secured creditors

2.085

Discounts

2.086

Mutual credit and set-off

In addition to the matters listed in Rule 2.086(2)(a) to (e), “mutual dealings” does not include any mutual dealings between the society and a creditor who is also a shareholding member of the society in respect of shares held by that person in the society.

Where the conditions in paragraph (1) of Rule 49 of the 2012 Rules are met, Rule 2.086 applies with the modifications set out in Rule 49 in addition to the modifications set out above.

2.087

Debt in foreign currency

2.088

Payments of a periodical nature

2.089

Interest

2.090

Debt payable at future time

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

1. 1

   The notice in Rule 2.096(1) shall also be given where the special administrator is proposing to make a distribution to shareholding members.

2. 2

   The notice in Rule 2.096(1) shall state, where applicable, that the distribution is to shareholding members of the society.

3. 3

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

   1. a

      the FCA and where relevant the PRA;

   2. b

      the FSCS;

   3. c

      shareholding members of the society; and

   4. d

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

4. 4

   In Rule 2.096(4)(a) the reference to a distribution to creditors includes, where appropriate, a distribution to shareholding members.

2.097

Admission or rejection of proofs

2.098

Declaration of dividend

In Rule 2.098(1) the reference to one or more classes of creditor includes a reference to one or more classes of shareholding member.

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 FCA and where relevant the PRA;

   2. b

      the FSCS;

   3. c

      shareholding members of the society; and

   4. d

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

2. 2

   In the case of special administration following transfer to a bridge bank under section 12(2) of the Banking 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.

3. 3

   The particulars required by Rule 2.099(2) include, where appropriate, details of any distribution to shareholding members.

2.100

Payment of dividends and related matters

In Rule 2.100(2) the reference to any creditor includes a reference to any shareholding member.

2.101

Notice of no dividend or no further dividend

1. 1

   The special administrator shall copy any notice under Rule 2.101 to—

   1. a

      the FCA and where relevant the PRA;

   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. 2

   In Rule 2.101 the reference to creditors includes a reference to shareholding members.

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 shall be given to the FCA and where relevant the PRA; and

2. b

   the FCA and where relevant the PRA may appear and be heard.

2.105

Assignment of right to dividend

2.106

Debt payable at future time

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

2.107

Fixing of remuneration

1. 1

   In the Objective 1 Stage the Bank of England shall fix the special 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 the achievement of Objective 1.

2. 2

   In respect of any application under Rule 2.109—

   1. a

      notice of the application shall be given to the FCA and where relevant the PRA; and

   2. b

      the FCA and where relevant the PRA 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

2.111

Final progress reports

1. 1

   The reference to Rule 2.048 is to be treated as a reference to Rule 36.

2. 2

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

   1. a

      shall not be made until the special administrator is satisfied that any payment likely to be made to the building society 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.

2.115

Application to court by administrator

Rule 2.115 is not applied – but equivalent provision is made by Part 3 of these Rules

2.119

Moving from administration to dissolution

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

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 and the FCA and where relevant the PRA 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 from office

(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 1989 Order in Table 1 in section 145 of the Banking Act.)

1. 1

   An application shall 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 FCA and where relevant the PRA 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 (ignoring references to paragraph 96 of Schedule B1 to the 1989 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 1989 Order in Table 1 in section 145 of the Banking Act) see Part 3 of these Rules.)

2.127

Notification and advertisement of appointment of replacement administrator

2.128

Notification and advertisement of appointment of joint administrator

2.129

Notice to FCA of replacement or addition

2.130

Administrator’s duties on vacating office

4.027

Appointment of provisional liquidator

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 up security

4.033

Remuneration

Ignore paragraph (5).

4.034

Termination of appointment

1. 1

   An application for termination may be made by—

   1. a

      the provisional special administrator; or

   2. b

      the Bank of England.

2. 2

   A provisional special administrator’s appointment terminates on the making of a special administration order.

4.197

Notice of disclaimer

(In the case of special administration following transfer to a bridge bank under section 12(2) of the Banking Act 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 1989 Order in Table 2 in section 145 of the Banking Act.)

4.198

Communication of disclaimer to persons interested

4.199

Additional notices

4.200

Duty to keep court informed

4.201

Application by interested party under Article 152(4) of the 1989 Order

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 1989 Order

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

7.05

Application of Chapter 2 of Part 7

7.06

Interpretation

7.07

Form and contents of application

7.07A

Application to disapply Article 150A of the 1989 Order

7.08

Filing and service of application

7.08A

Notice of application under Article 150A of the 1989 Order

7.09

Other hearings ex parte

7.10

Use of affidavit evidence

7.11

Filing and service of affidavit

7.12

Use of reports

7.13

Adjournment of hearing 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 the Order

7.21

Warrants

7.22

Warrants under Article 200

7.24

Court records

7.25

Inspection of records

7.27

Right to inspect the file

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

7.29

Costs: application of the Rules of the Court of Judicature of (Northern Ireland) 198023

7.30

Requirement to tax costs

7.32

Procedure where taxation 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 incapable of managing their affairs

7.39

Appointment of another person to act

7.40

Affidavit in support of application

7.41

Services of notices following appointment

7.42

Appeals from Master

7.44

Procedure on appeal

7.45

Principal court rules and practice to apply

7.47

Right of attendance

7.48

Insolvency practitioner’s solicitor

7.50

Formal defects

7.51

Restriction on concurrent proceedings and remedies

7.52

Affidavits

7.53

Security in court

7.54

Discovery

7.55

Copies of documents

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

8.6

Proxy-holder with financial interest

9.1

Preliminary

1. 1

   Part 9 applies to applications under Article 200 of the 1989 Order (inquiry into society’s dealings, etc.) as applied by Table 2 in section 145 of the Banking Act.

2. 2

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

9.2

Form and contents of application

9.3

Order for examination, etc.

9.4

Procedure for examination

9.5

Record of examination

9.6

Costs of proceedings

12.01

Regulation of specified administrative matters

12.02

Costs

12.03

Provable debts

12.04

Notices

12.05

Quorum at meetings of creditors or contributories

12.06

Evidence of proceedings at meetings

12.07

Documents issuing from Department

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

General provisions as to service

12.13

Service outside jurisdiction

12.14

Confidentiality of documents

12.15

Notices sent simultaneously to the 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, etc.

12.21

The Gazette

12.22 and Schedule 3

Punishment of offences

12.23

Notice of order under Article 150A(5) of the 1989 Order