The Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021

Requirement as to independence

12.—(1) An individual meets the requirement as to independence unless they—

(a) are connected(1) with the company,

(b) are an associate(2) of the connected person or connected with the connected person,

(c) know or have reason to believe that they have a conflict of interest with respect to the substantial disposal, or

(d) have, at any time during the period of 12 months ending with the date on which a report is made by that individual for the purpose of satisfying the condition in regulation 3(1)(b) provided advice to, and in respect of, the company or a connected person in relation to the company—

(i) in connection with, or in anticipation of, the commencement of an insolvency procedure under Parts A1 to 5 of the Act, or

(ii) in relation to corporate rescue or restructuring.

(2) In this regulation “conflict of interest” means a financial or other interest which is likely to affect prejudicially the independence of the individual in providing a report made for the purpose of satisfying the condition in regulation 3(1)(b).

(3) Nothing in this regulation limits the scope of an individual’s obligation to comply with any professional or regulatory requirements to which that individual is subject.

(1)

“Connected” (apart from where it is used in the expression “connected person”) is defined in section 249 of the Act.

(2)

“Associate” is defined in section 435 of the Act.