The following Restructuring & Insolvency guidance note Produced in partnership with Richard Bowles of Three Stone provides comprehensive and up to date legal information covering:
The Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) provide for a revised scheme for decision making in insolvency from 6 April 2017.
The previous rules provided for decisions to be made at meetings. The new rules have tried to limit the number of meetings called, and now make clear that where a decision is to be made by either a qualifying decision procedure, a creditors’ decision procedure or a deemed consent procedure, then the rules set out in IR 2016, Pt 15 apply.
Meetings have not been abolished entirely, however they now only occur on request by the relevant proportion of creditors (IR 2016, SI 2016/1024, r 15.6). The relevant proportion is 90% (sections 246ZE and 379ZA of the Insolvency Act 1986 (IA 1986)).
For further information on the changes found in IR 2016, pt 15, see Practice Notes: The Insolvency (England and Wales) Rules 2016—communications [Archived] and The Insolvency (England and Wales) Rules 2016—decision-making [Archived].
The deemed consent procedure is a new procedure under the IR 2016 whereby a decision is made by the creditors by not objecting to a course of action suggested.
This applies where a company’s creditors or contributories (IA 1986, s 246ZF) or an individual’s creditors (IA 1986, s 379ZB) need to make a decision which is not required to be made
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