The Investment Bank Special Administration (Scotland) Rules 2011

1. Introductory Text

2. PART 1 Introductory Provisions

   1. 1. Citation

   2. 2. Commencement

   3. 3. Extent

   4. 4. Interpretation

   5. 5. Application of Rules

3. PART 2 Application for Order

   1. CHAPTER 1 Application for special administration order

      1. 6. Content of application

      2. 7. Statement of proposed administrator

      3. 8. Lodging of application

      4. 9. Service of application

      5. 10. Expenses

      6. 11. Notice of special administration order

   2. CHAPTER 2 Application for a special administration (bank insolvency) order

      1. 12. Application for a special administration (bank insolvency) order

      2. 13. Persons entitled to copy of application

      3. 14. Appointment of administrator by the court

      4. 15. Authentication of the administrator’s appointment

      5. 16. Duties of Objective A committee

      6. 17. Appointment of person under section 135 of the 1986 Act

      7. 18. Order of appointment

      8. 19. Caution

      9. 20. Failure to find or maintain caution

      10. 21. Remuneration

      11. 22. Termination of appointment

   3. CHAPTER 3 Application for a special administration (bank administration) order

      1. 23. Application for a special administration (bank administration) order

      2. 24. Statement of proposed administrator

      3. 25. Lodging

      4. 26. Service

      5. 27. Expenses

      6. 28. Notice of order

      7. 29. Remuneration of the administrator

      8. 30. Appointment of person under section 135 of the 1986 Act

      9. 31. Order of appointment

4. PART 3 Process of Special Administration

   1. CHAPTER 1 Notice of appointment and statement of affairs

      1. 32. Notification and advertisement of administrator’s appointment

      2. 33. Notice requiring statement of affairs

      3. 34. Details of the client assets held by the investment bank

      4. 35. Statements of affairs and statements of concurrence

      5. 36. Limited disclosure

      6. 37. Release from duty to submit statement of affairs

      7. 38. Expenses of statement of affairs

   2. CHAPTER 2 Statement of proposals

      1. 39. Statement of proposals

   3. CHAPTER 3 Initial meeting to consider proposals

      1. 40. Initial meeting

      2. 41. Notice to officers

      3. 42. Business of the initial meeting

      4. 43. Adjournment of meeting to approve the statement of proposals

      5. 44. Revision of the statement of proposals

      6. 45. Meeting to approve the revised statement of proposals

      7. 46. Notice to creditors and clients

   4. CHAPTER 4 Meetings generally

      1. 47. Meetings generally

      2. 48. Venue

      3. 49. Notice of meeting by individual notice: when and where sent

      4. 50. Notice of meeting by individual notice: content and accompanying documents

      5. 51. Notice of meeting by advertisement only

      6. 52. Content of notice for meetings

      7. 53. Advertisement of meetings

      8. 54. Non-receipt of notice of meeting

      9. 55. Requisition of meetings

      10. 56. Expenses of requisitioned meetings

      11. 57. Quorum at meetings

      12. 58. Chair at meetings

      13. 59. Adjournment by chair

      14. 60. Adjournment in absence of chair

      15. 61. Claims, proofs and proxies in adjournment

      16. 62. Suspension

      17. 63. Venue and conduct of company meetings

   5. CHAPTER 5 Entitlement to vote at meetings

      1. 64. Entitlement to vote (creditors)

      2. 65. FSCS and voting rights

      3. 66. Calculation of voting rights (creditors)

      4. 67. Calculation of voting rights: special cases (creditors)

      5. 68. Entitlement to vote (clients)

      6. 69. Calculation of voting rights (clients)

      7. 70. Procedure for admitting clients’ claims for voting

      8. 71. Voting at meetings of creditors and clients

      9. 72. Requisite majorities

      10. 73. Requisite majorities at members or contributories’ meetings

      11. 74. Administrator voting

   6. CHAPTER 6 Correspondence and remote attendance

      1. 75. Correspondence instead of meetings

      2. 76. Remote attendance at meetings conducted in accordance with section 246A(9) of the 1986 Act

      3. 77. Action where person excluded

      4. 78. Indication to excluded person

      5. 79. Complaint

   7. CHAPTER 7 Report of meeting

      1. 80. Report of meeting

   8. CHAPTER 8 The creditors’ committee

      1. 81. Constitution of committee

      2. 82. Formalities of establishment

      3. 83. Functions and meetings of the committee

      4. 84. The chair at meetings

      5. 85. Quorum

      6. 86. Committee members’ representatives

      7. 87. Resignation

      8. 88. Termination of membership

      9. 89. Removal

      10. 90. Vacancies

      11. 91. Voting rights and resolutions

      12. 92. Remote attendance at meetings of creditors’ committee

      13. 93. Procedure for requests that a place for a meeting should be specified

      14. 94. Resolutions otherwise than at a meeting

      15. 95. Information from administrator

      16. 96. Expenses of members

      17. 97. Members dealing with the investment bank

      18. 98. Formal defects

   9. CHAPTER 9 Progress reports

      1. 99. Content of progress report

      2. 100. Sending progress report

   10. CHAPTER 10 Proxies and corporate representation

       1. 101. Definition of “proxy”

       2. 102. Form of proxy

       3. 103. Use of proxy at a meeting

       4. 104. Retention of proxies

       5. 105. Right of inspection

       6. 106. Proxy holder with financial interest

       7. 107. Representation of corporations

   11. CHAPTER 11 Disposal of charged property

       1. 108. Application to dispose of secured property

       2. 109. Application in a special administration (bank administration)

5. PART 4 Expenses of the Special Administration

   1. 110. Order of priority of expenses of the special administration

   2. 111. Expenses to be paid out of the client assets

   3. 112. Pre-administration costs

   4. 113. Allocation of expenses to be paid from client assets

6. PART 5 Objective 1

   1. CHAPTER 1 Setting a bar date

      1. 114. Notice of the bar date

      2. 115. Content of claim for client assets

      3. 116. Content of claim in respect of security interest

      4. 117. Costs of making a claim

      5. 118. New administrator appointed

   2. CHAPTER 2 Further notification

      1. 119. Notifying potential claimants after bar date has passed

   3. CHAPTER 3 Distribution plan

      1. 120. Distribution plan

      2. 121. Approval by the creditors’ committee

      3. 122. Approval by the court

      4. 123. Treatment of late claimants

7. PART 6 Distributions to Creditors

   1. 124. Application of Part 6

   2. 125. Submission of claim

   3. 126. Statement of claim

   4. 127. Application of the 1985 Act in relation to creditor’s claims

   5. 128. Claims in foreign currency

   6. 129. Administrator to allow inspection of proofs

   7. 130. New administrator appointed

   8. 131. Order of priority of distribution

   9. 132. Application of 1985 Act in relation to distribution of assets

   10. 133. Payment of dividends

   11. 134. Rights of eligible depositors and set-off

8. PART 7 The Administrator

   1. CHAPTER 1 Remuneration of the administrator

      1. 135. Remuneration of administrator

      2. 136. Administrator’s application to increase remuneration

   2. CHAPTER 2 Replacing the administrator

      1. 137. Grounds for resignation

      2. 138. Notice of intention to resign

      3. 139. Notice of resignation

      4. 140. Application to court to remove administrator from office

      5. 141. Incapacity of administrator to act through death or otherwise

      6. 142. Application to replace (special administration)

      7. 143. Application to replace (special administration (bank insolvency))

      8. 144. Application to replace (special administration (bank administration))

      9. 145. Notification and advertisement of appointment of replacement administrator

      10. 146. Notification and advertisement of appointment of joint administrator

      11. 147. Additional joint administrator (special administration (bank administration))

      12. 148. Administrator’s duties on vacating office

9. PART 8 End of Special Administration

   1. 149. Final progress report

   2. 150. Application to court by administrator

   3. 151. Application to court by creditor

   4. 152. Notification by administrator of court order

   5. 153. Moving from administration to dissolution

10. PART 9 Applications to Court

    1. CHAPTER 1 Applications under section 176A of the 1986 Act

       1. 154. Applications under section 176A(5) of the 1986 Act to disapply section 176A

       2. 155. Notice of an order under section 176A(5) of the 1986 Act

    2. CHAPTER 2 Defects

       1. 156. Power of court to cure defects

11. PART 10 Application of section 216 of the 1986 Act

    1. 157. Preliminary

    2. 158. Application for leave under section 216(3) of the 1986 Act

    3. 159. First excepted case

    4. 160. Second excepted case

    5. 161. Third excepted case

12. PART 11 Provisions of General Effect

    1. CHAPTER 1 Miscellaneous and general

       1. 162. Fees and expenses

       2. 163. Punishment of offences

    2. CHAPTER 2 Giving of notice and supply of documents

       1. 164. Application of Chapter 2

       2. 165. Giving of notices

       3. 166. Sending by post

       4. 167. Certificate of giving notice

       5. 168. Authentication

       6. 169. Electronic delivery

       7. 170. Use of websites by administrator

       8. 171. Special provision on account of expense as to website use

       9. 172. Electronic submission of information

       10. 173. Electronic submission of information where rule 172 does not apply

       11. 174. Contents of notices to be advertised in the Edinburgh Gazette

       12. 175. Notices otherwise advertised under the Regulations or these Rules

       13. 176. Notices otherwise advertised

       14. 177. Omission of unobtainable information

    3. CHAPTER 3 Notifications to the registrar of companies

       1. 178. Application of Chapter 3

       2. 179. Information to be contained in all notifications to the registrar

       3. 180. Notification relating to the administrator

       4. 181. Notifications relating to documents

       5. 182. Notifications relating to court orders

       6. 183. Notifications relating to other events

       7. 184. Notifications of more than one nature

       8. 185. Notifications made to other persons at the same time

    4. CHAPTER 4 Further provisions concerning documents

       1. 186. Confidentiality of documents

       2. 187. Right to inspect documents, to have list of creditors and to copy documents

       3. 188. Sederunt book

       4. 189. Disposal of investment bank’s books, papers and other records

    5. CHAPTER 5 Further provisions concerning the administrator

       1. 190. Administrator’s caution

       2. 191. Information about time spent on the special administration

       3. 192. Service on joint administrators

    6. CHAPTER 6 Transfer of proceedings

       1. 193. Proceedings commenced in the wrong court

       2. 194. Proceedings other than special administration commenced

13. Signature

14. Explanatory Note