How could Scottish independence change the insolvency law landscape?

How could Scottish independence change the insolvency law landscape?
What are the potential implications of Scottish independence on the restructuring of companies with assets on both sides of the border? Stewart Rennie of Rennie McInnes LLP expects that at some point, given the passage of time, there would be changes to the corporate insolvency regime in Scotland.

Original news

Policy Paper: Scotland’s future—Referendum, LNB News 26/11/2013 81

The Scottish Government believes the people of Scotland, individually and collectively, will be better off with independence, and has published a guide, titled ‘Scotland’s Future’, which sets out the gains an independent Scotland will bring. Scotland’s referendum on independence will take place on 18 September 2014. If a Yes vote results, Scotland will become independent on 24 March 2016 and the first elections to an independent Scottish Parliament will be held in the spring of 2016.

If Scotland was to gain independence, how would this affect the restructurings of companies that have assets in both England and Scotland?

I don’t think restructurings would be affected greatly, certainly not in the immediate aftermath of independence. Ironically, the right to a separate Scottish legal system was one of the guarantees given under the Act of Union of 1707 that the Yes campaign is now seeking to dissolve.

Accordingly, there have always been structural differences (eg in property law) and these would remain unchanged. While you would need Scottish lawyers to deal with Scottish aspects of the transaction, this is something you require currently and would not really change.


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