Act of Sederunt (Rules of the Court of Session 1994 and Sheriff Court Rules Amendment) (Miscellaneous) 2019

EXPLANATORY NOTE

(This note is not part of the Act of Sederunt)

This Act of Sederunt makes amendments to the Rules of the Court of Session 1994, the Act of Sederunt (Sheriff Court Company Insolvency Rules) 1986 and the Act of Sederunt (Company Directors Disqualification) 1986.

The amendments made in relation to the first two are in consequence of the revocation of the Insolvency (Scotland) Rules 1986 and its replacement with two separate sets of Rules governing corporate insolvency: the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018 and the Insolvency (Scotland) (Receivership and Winding up) Rules 2018 (“the new Insolvency Rules”).

The new Insolvency Rules also address amendments made by the Small Business, Enterprise and Employment Act 2015 (c.26) (“the 2015 Act”) to the Insolvency Act 1986 in relation to meetings, which are to be commenced for Scotland on 6th April 2019. The UK Government intends to make provision with effect from that date so that the changes made by the 2015 Act do not apply to specialist corporate insolvency regimes, for example the regimes governing the insolvency of banking or energy companies.

Paragraph 2 makes a number of changes to Chapter 74 of the Rules of the Court of Session 1994 in consequence of the new Insolvency Rules. New rule 74.3A (inserted by paragraph 2(4)) provides that block transfer orders must be made by petition, with a single petition being competent for an application for transfer orders in respect of supervisors, nominees, administrators and liquidators. New rule 74.3B makes provision for the court remedies created by the new Insolvency Rules in pursuance of the changes introduced by the 2015 Act. Paragraph 2(14)(a)(ii), (15) and (17) include new provision as to how applications and appeals in voluntary winding up are to be made. New rule 74.31B makes provision about how to apply to the court in relation to certain specific court remedies in voluntary winding up. New rule 74.31C makes general provision about the method of application for other court remedies.

Paragraph 3 makes broadly equivalent changes to the Act of Sederunt (Sheriff Court Company Insolvency) Rules 1986 as are made by paragraph 2 in respect of the Rules of the Court of Session 1994.

Paragraph 4 effects a minor change to make it clear that compensation orders under section 15A, and applications for variation or revocation of compensation undertakings under section 15C, of the Company Directors Disqualification Act 1986 are made by summary application.

Paragraph 5 makes saving provision. Sub-paragraph (1) provides that any court procedure in progress before, and still in progress immediately before, 6th April 2019 continues to proceed under the court rules as they had effect immediately before the coming into force of this Act of Sederunt. Sub-paragraph (2) provides that the changes made by this Act of Sederunt do not apply in relation to the insolvency proceedings of limited liability partnerships. Sub-paragraph (3) has the effect of preserving rule 74.9 of the Rules of the Court of Session as it had effect before this Act of Sederunt for the purposes of specialist insolvency regimes. Sub-paragraphs (4), (5) and (6) make saving provision to reflect particular savings made in schedule 2 of the new Insolvency Rules in respect of statements of affairs and certain meetings. The Insolvency (Scotland) Rules 1986 which are the subject of those savings contain a number of court remedies and the sub-paragraphs mentioned ensure that the court rules continue to make provision about the methods for exercising those remedies.