As many readers will know, in September 2013 the government published a consultation paper concerning the proposed consolidation and replacement of the Insolvency Rules 1986 (Rules).
The paper, called ‘Insolvency Rules 1986 – modernisation of rules relation to insolvency law’, includes a working draft of the new Rules. It welcomes general feedback from the insolvency and corporate recovery profession and answers specific questions raised in relation to proposed structural, content and policy changes.
The key proposed amendments can be summarised as follows:
- The intention is to repeal the Rules and the 23 amending instruments and replace them with a single set of modernised rules that will be easier and quicker to use.
- It is proposed that the whole structure of the Rules should be restructured on more logical and clear lines. For example, it is proposed that the new Rules will include an extensive list of definitions and clear guidance for interpretation at the beginning and where procedures are common to different types of insolvency they will be set out together for ease of reference.
- The new Rules have been drafted on the presumption that processes will in due course be carried out electronically wherever possible.
- The new Rules also include a number of proposed technical changes. For example, the new Rules seek to amend the effective date of removal of a liquidator or trustee where they have been removed from office and a replacement appointed (in order to avoid a period of overlap in appointments) and to simplify the resignation and release procedures for liquidators and trustees.
The deadline for comments on the draft Rules is 24 January 2014. These can be submitted by email to Policy.Unit@insolvency.gsi.gov.uk .
You can access a copy of the consultation paper and the working draft of the new Rules by clicking on the following link: https://www.gov.uk/government/consultations/modernisation-of-the-rules-relating-to-insolvency-law