A summary of the key changes in the Insolvency Rules 2016

A summary of the key changes in the Insolvency Rules 2016

The long awaited Insolvency Rules 2016 (the 2016 Rules) were published and laid before parliament on 25 October 2016. The rules will come in to force on 6 April 2017. This note, prepared by Sarah Clarke of Hardwicke, summarises the key features of the new rules.

Introduction

The 2016 Rules were published and laid before parliament on 25 October 2016. The rules will come in to force on 6 April 2017. The following note is an attempt to summarise the key features of the rules. For further detail the reader is referred to the following sources:

The structure of the 2016 Rules and abolition of statutory forms

The new rules entirely do away with statutory forms for use in insolvency proceedings

The explanatory notes explain that this is part of a process of ‘future proofing’ the rules by reducing the need for amendment to forms. Instead of statutory forms, the 2016 Rules, Pt 1 sets out what should be included in various documents and notices. So, for example, rule 1.35 sets out the contents of application notices, rule 7.5 sets out the prescribed contents of a creditors winding up petition, rule 7.26 sets out the prescribed contents of a contributory’s winding up petition etc. The order in which the prescribed information is to appear is defined in rule 1.8, and rule 1.9 allows variations from prescribed contents (except in statutory demands) if the circumstances require or the departure is immaterial.

The transitional provisions acknowledge limited circumstances in which the statutory forms may still be used after commencement. In summary it appears that the old statutory forms should only be used in circumstances where the Insolvency Rules 1986, SI 1986/1925 (the 1986 Rules) still apply under transitional provisions (the 2016 Rules, Sch 9 para 15).

Consolidation

Related Articles:
Latest Articles:

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login

About the author:
Eleanor qualified in 1998 into the insolvency team at ASB law. She became a partner in 2005, and went on to head up the Recovery & Insolvency team. Whilst traditionally specialising mainly in contentious corporate insolvency matters, in recent years she has moved into the non contentious arena, in particular specialising in company administrations.