Scotland: officeholder remuneration in Scottish Corporate Insolvency
Produced in partnership with Eileen Maclean of Insolvency Support Services
Scotland: officeholder remuneration in Scottish Corporate Insolvency

The following Restructuring & Insolvency practice note produced in partnership with Eileen Maclean of Insolvency Support Services provides comprehensive and up to date legal information covering:

  • Scotland: officeholder remuneration in Scottish Corporate Insolvency
  • Introduction and Background
  • Basis of remuneration
  • Liquidation
  • Administration
  • Receivership
  • CVA
  • Fee estimates
  • Accounting periods
  • Date of commencement of an accounting period
  • More...

Introduction and Background

The Bankruptcy (Scotland) Act 1985 (B(S)A 1985) came into force in 1986 and set out in detail the procedures for dealing with various aspects of sequestration (Scottish bankruptcy). When the Insolvency (Scotland) Rules 1986, SI 1986/1915 were issued relatively quickly thereafter relating to corporate insolvency in Scotland, the rules chose to rely on the recently-introduced provisions of the B(S)A 1985 and adapt them for liquidation, specifically in relation to adjudication of claims, accounting periods and approval of the liquidator’s remuneration. The 1986 rules on liquidation would therefore refer the reader to the relevant sections of the B(S)A 1985 with the direction to substitute ‘liquidation’ for ‘sequestration”’ and ‘liquidator”’ for ‘trustee’.

With the introduction of the ‘new’ administration procedure in 2003 in terms of the Enterprise Act 2002, the administration rules on adjudication of claims, accounting periods and approval of the administrator’s remuneration in turn simply referred to the liquidation rules which in turn referred to sequestration and the provisions of the B(S)A 1985. Therefore, the system of adjudication on claims and approval of remuneration in sequestration, liquidation and administration was broadly the same and based on the provisions of the B(S)A 1985.

The Insolvency (Scotland) Amendment Rules 2010, SI 2010/688 began the process of ‘unhooking’ the administration process (only) from the sequestration process. The Insolvency (Scotland) Amendment Rules 2014, SSI 2014/114 completed the separation

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