Creditor communication and decision procedures

The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 provide a scheme for decision-making in all insolvency procedures from 6 April 2017. The detailed provisions for decision-making are set at IR 2016, SI 2016/1024, Pt 15.

The deemed consent procedure

The deemed consent procedure is a procedure whereby a decision is made by creditors by not objecting to a suggested course of action.

This procedure may be used (instead of a qualifying decision procedure) where a company’s creditors or an individual’s creditors need to make a decision about any matter, unless:

•
a decision is required to be made by a qualifying decision procedure by virtue of the Insolvency Act 1986 (IA 1986) (for example the removal of a liquidator in a creditors’ voluntary liquidation (CVL)), or
•
by a court order

The deemed consent procedure cannot be used to make a decision on remuneration of any person.

Under the deemed consent procedure, the relevant creditors (other than opted-out creditors) or (as the case may be) the relevant contributories are given notice of:

•the matter about which ...

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