The Investment Bank Special Administration (England and Wales) Rules 2011

Postponement or cancellation of dividend

This section has no associated Explanatory Memorandum

177.—(1) If in the period of 2 months referred to in rule 175(5)(a)—

(a)the administrator has rejected a proof in whole or in part and application is made to the court for that decision to be reversed or varied; or

(b)an application is made to the court for the administrator’s decision on a proof to be reversed or varied, or for a proof to be expunged, or for a reduction of the amount claimed,

the administrator may postpone or cancel the dividend.

(2) Where in that same period the administrator considers that, due to the nature of the business of the investment bank, there is real complexity in admitting or rejecting proofs of claims submitted, or that the quantum of claims may be affected by any shortfalls in claims for client assets, the administrator may postpone the dividend.