Scotland—in a case concerning a creditor’s voluntary liquidation, must the Insolvency Practitioner (IP) give notice of appointment to all creditors? If notice is not given correctly, is the IP appointment still valid? What makes the appointment valid?

There are two primary circumstances in which a company can enter creditors’ Voluntary liquidation (CVL). The first is under paragraph 83 of Schedule B1 to the Insolvency Act 1986 (IA 1986), where the company has been in administration. The second is under IA 1986, Pt IV, Ch IV (IA 1986, s 73) where the company enters CVL by way of member and creditor resolutions (a third option is where the company is in members’ voluntary liquidation but is in fact insolvent—see IA 1986, ss 95–96).

Where the company is in administration and the administrator thinks that each secured creditor will received payment in respect of their debt and a distribution will be made to unsecured creditors, the administrator may send a notice to the registrar of companies (with a copy being lodged at the court and sent to creditors). The registrar