Restructuring & Insolvency: The Law Society publishes LexisNexis protocol for virtual statutory negotiations

Restructuring & Insolvency: The Law Society publishes LexisNexis protocol for virtual statutory negotiations

 

LexisPSL Restructuring & Insolvency have worked in partnership with Phillip Patterson of Hardwicke to create a new protocol for making and administering statutory declarations in insolvency proceedings by video conference.

The protocol takes into account the Temporary Insolvency Practice Direction (TIPD) and assists practitioners with remote statutory declarations during the coronavirus (COVID-19) pandemic.

The Law Society also listed the LexisNexis protocol in their Daily Bulletin via e-mail, as one of the "Latest key topics of interest to large law firms from the Law Society’s online COVID-19 hub":

With the support of Lexis Nexis we have now placed on our website a protocol for virtual statutory declarations relevant for insolvency proceedings. COVID-19 created uncertainty over whether statutory declarations in insolvency proceedings could still safely be made and administered in person and whether, as an alternative, the process could validly be completely remotely using real-time video conference technology such as Zoom or Skype. This protocol addresses that issue and can be found here.

 

Background

Statutory declarations are a necessary part of insolvency proceedings, most commonly where a company enters members’ voluntary liquidation (MVL) (see section 89 of the Insolvency Act 1986 (IA 1986)) and where a company enters administration by an out of court appointment (see the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 3.17).

 

Why are remote statutory declarations necessary?

Statutory declarations are a necessary part of insolvency proceedings, most commonly where a company enters members’ voluntary liquidation (see section 89 of the Insolvency Act 1986 (IA 1986)) and where a company enters administration by an out-of-court appointment (see the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 3.17). The wording required when making statutory declarations is governed by the Statutory Declarations Act 1835, but conduct for making and administering them is largely customary. That custom dictates that the person giving the statutory declaration and the solicitor administering in it are in the same place.

In response to the coronavirus pandemic, the UK Government introduced social distancing rules in March 2020 which has made face-to-face statutory declarations problematic. To address this uncertainty, on 6 April 2020 TIPD was introduced. Read more...

 

How should the protocol be used?

The use of technology provides several options for making a statutory declaration by video conference. The protocol provides alternative, hierarchical options for making and administering a statutory declaration by video conference. The options are not prescriptive or exhaustive; rather they suggest alternative methods of making the declaration.

 

Where can I access the protocol?

Practitioners can access the protocol by clicking on the link below:

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About the author:

Amy leads the thought leadership and content strategy for LexisNexis UK. Her work appears in LexisNexis' marketing campaigns, industry press and legal industry magazines. She is an established writer and researcher, having contributed in national publications, such as City A.M. and Financial IT. She is also one of the writers and digital editors of LexisNexis' insights blogs, the Future of Law and the In-house blog.