The Insolvency (Amendment) Rules 1987

SECTION 11: AMENDMENT OF PART 12 OF THE RULES

Amendment of Rule 12.1

142.—(1) In paragraph (1) of Rule 12.1 for the words “make regulations” there shall be substituted the words “, subject to the Act and the Rules, make regulations with respect to any matter provided for in the Rules as relates to the carrying out of the functions of a liquidator, provisional liquidator, administrator or administrative receiver of a company, an interim receiver appointed under section 286, of the official receiver while acting as receiver or manager under section 287 or of a trustee of a bankrupt’s estate, including, without prejudice to the generality of the foregoing, provision”.

(2) In paragraph (3) of Rule 12.1 there shall be added at the end the words:—

“; and

(d) contain such incidental, supplemental and transitional provisions as may appear to the Secretary of State necessary or expedient”.

Amendment of Rule 12.3

143.—(1) In subparagraph (b) of paragraph (2) of Rule 12.3 there shall be added at the end the words “or section 1 of the Criminal Justice (Scotland) Act 1987”.

(2) After paragraph (2) of Rule 12.3 there shall be inserted the following paragraph:—

“(2A) The following are not provable except at a time when all other claims of creditors in the insolvency proceedings (other than any of a kind mentioned in this paragraph) have been paid in full with interest under section 189(2) or, as the case may be, section 328(4)—

(a) in a winding up or a bankruptcy, any claim arising by virtue of—

(i) section 6(3)(a) of the Financial Services Act 1986, not being a claim also arising by virtue of section 6(3)(b) of that Act, or

(ii) section 61(3)(a) of that Act, not being a claim also arising by virtue of section 61(3)(b) of that Act;

(b) in a winding up or a bankruptcy, any claim arising by virtue of section 49 of the Banking Act 1987;

(c) in a winding up, any claim which by virtue of the Act or any other enactment is a claim the payment of which in a bankruptcy or a winding up is to be postponed.”.

Insertion of Rule 12.4A

144.  After Rule 12.4 there shall be inserted the following rule:—

“Quorum at meeting of creditors or contributories

12.4A.— (1) Any meeting of creditors or contributories in insolvency proceedings is competent to act if a quorum is present.

(2) Subject to the next paragraph, a quorum is—

(a) in the case of a creditors' meeting, at least one creditor entitled to vote;

(b) in the case of a meeting of contributories, at least 2 contributories so entitled, or all the contributories, if their number does not exceed 2.

(3) For the purposes of this Rule, the reference to the creditor or contributories necessary to constitute a quorum is to those persons present or represented by proxy by any person (including the chairman) and in the case of any proceedings under Parts I—VII of the Act includes persons duly represented under section 375 of the Companies Act.

(4) Where at any meeting of creditors or contributories—

(a) the provisions of this Rule as to a quorum being present are satisfied by the attendance of—

(i) the chairman alone, or

(ii) one other person in addition to the chairman, and

(b) the chairman is aware, by virtue of proofs and proxies received or otherwise, that one or more additional persons would, if attending, be entitled to vote,

the meeting shall not commence until at least the expiry of 15 minutes after the time appointed for its commencement.”.

Amendment of Rule 12.7

145.  For paragraph (3) of Rule 12.7 there shall be substituted the following:—

“(3) Where any form contained in Schedule 4 is substantially the same as one used for a corresponding purpose under either—

(a) the law and practice obtaining before the coming into force of the Rules; or

(b) if the form was first required to be used after the coming into force of the Rules, the law and practice obtaining before the making of the requirement,

whichever shall be appropriate in any case, the latter may continue to be used (with the necessary modifications) until 1 March 1988.”.

Amendment of Rule 12.10

146.  After paragraph (1) of Rule 12.10 there shall be inserted the following paragraph:—

“(1A) A document to be served by post may be sent to the last known address of the person to be served.”.

Amendment of Rule 12.11

147.  In paragraph (1) of Rule 12.11 after the word “Subject” there shall be inserted the words “to Rule 12.10 and”.

Amendment of Rule 12.13

148.  After paragraph (3) of Rule 12.13 there shall be added the following paragraph:—

“(4) Nothing in this Rule entitles the insolvency practitioner to decline to allow the inspection of any proof or proxy.”.

Amendment of Rule 12.15

149.  In Rule 12.15 before the word “Rules” there shall be inserted the words “Act or the”.

Insertion of Rule 12.15A

150.  After Rule 12.15 there shall be inserted the following rule:—

“Charge for copy documents

12.15A.   Where the responsible insolvency practitioner or the official receiver is requested by a creditor, member, contributory or member of a liquidation or creditors' committee to supply copies of any documents he is entitled to require the payment of the appropriate fee in respect of the supply of the documents.”.