The Insolvency (England and Wales) Rules 2016—what does your business need to know? [Archived]
Produced in partnership with Ben Jones and Sophie Taylor of Bryan Cave Leighton Paisner LLP
The Insolvency (England and Wales) Rules 2016—what does your business need to know? [Archived]

The following Restructuring & Insolvency practice note produced in partnership with Ben Jones and Sophie Taylor of Bryan Cave Leighton Paisner LLP provides comprehensive and up to date legal information covering:

  • The Insolvency (England and Wales) Rules 2016—what does your business need to know? [Archived]
  • Key changes
  • Decision-making by creditors
  • Abolition of physical creditors’ meetings
  • So how will creditors make decisions under the new rules?
  • Communication with creditors
  • Electronic communication
  • Use of websites
  • Creditors ability to ‘opt out’
  • Small debts
  • More...

The Insolvency (England and Wales) Rules 2016—what does your business need to know? [Archived]

ARCHIVED: This Practice Note has been archived and is not maintained.

The Insolvency (England & Wales) Rules 2016, SI 2016/1024 (IR 2016) came into force on 6 April 2016 and will significantly change the way in which you as a creditor are able to participate in the debtor’s insolvency proceedings.

Key changes

Decision-making by creditors

Abolition of physical creditors’ meetings

Save in limited circumstances, physical meetings of creditors are no longer permitted unless requested by a minimum number of creditors:

  1. 10% by value

  2. 10% by number, or

  3. ten individual creditors

Therefore, since 6 April 2017, the circumstances in which you might be invited to a creditors’ meeting will significantly reduce.

So how will creditors make decisions under the new rules?

Decision proceduresDeemed consent procedure
A decision may be made by any ‘decision procedure’ the office-holder thinks fit, unless the IR 2016, SI 2016/1024 specify a particular procedure.
The decision procedures are:
  1. correspondence

  2. electronic voting

  3. virtual meeting

  4. physical meeting (where requested by the creditors), or

  5. any other decision-making procedure that enables all creditors entitled to participate, to do so

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