Statement of Insolvency Practice meaning

This Checklist This Checklist considers the details a company voluntary arrangement (CVA) proposal must include under the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 and Statement of Insolvency Practice (SIP) 3.2, together with expectations from other stakeholders likely to be impacted by the CVA, notably the Pension Protection Fund (PPF) and the British Property Federation (BPF): the IR 2016, SI 2016/1024, rr 2.2, 2.3 Statement of Insolvency Practice (SIP) 3.2 PPF requirements, see: Checklist for approval of CVAs involving the Pension Protection Fund BPF requirement, see: Checklist: British Property Federation engagement and red flags for company voluntary arrangements A CVA proposal sets out the detailed terms of a compromise between the company and its creditors, so it must be thorough and correct in every respect. If the proposal or surrounding circumstances are intricate, a solicitor should review or draft it to make sure it faithfully embodies the arrangement’s intentions. The proposal should be clear and...

Checklist This Checklist outlines the actions required to appoint an administrator via the court route. Use it together with these Practice Notes: Court appointments—who may apply and in what situations? Court appointments of administrators—the procedure Application Step 1 Prepare the papers for the application, namely: administration application witness statement supporting the administration application proposed administrator’s statement and consent to act Links to the relevant Forms/Precedents appear at the end of this Checklist. Time: Day 1 Section/rule: Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, rr 3.2, 3.3 and 3.6 Step 2 File all of the above at court with the correct fee (see the Practice Note: Court fees in insolvency proceedings). Provide additional copies for service (see step 3 below regarding who must be served); these should be lodged for court endorsement and then served. The court will list a venue, date and time for the...

Who to serve and when The respondent to the application is the Official Receiver or the relevant office-holder, and accordingly the application together with the witness statement must be served on them. Under the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 22.2, the applicant must give notice of any application for permission to use a prohibited name to the Secretary of State for Business and Trade (the Secretary of State). This notification can be made via the Insolvency Service (for postal and email address details, see Insolvency Service Guidance: Re-use of company names). Rule 22.2 of IR 2016 requires that the Secretary of State receives no less than 14 days’ notice. In practice, however, notice ought to be provided to all interested parties as far ahead of any hearing as possible, in good time, so that the Insolvency Service has sufficient time to consider the application fully with their lawyers...

MTA Personal Injury Solicitors LLP (in administration) (acting by its joint administrators Andrew Lawrence Hosking and Sean Bucknall) v Wiseglass [2024] EWHC 2208 (Ch) What are the practical implications of this case? The burden rests on the administrator, as an office-holder owing fiduciary duties, to substantiate any request for remuneration by being candid with the court and providing information that is adequate, coherent and sufficient. The administrator must justify fees with proper evidence and open disclosure. Statement of Insolvency Practice (SIP) 2 is pivotal in underscoring the duty to identify assets, including prospective claims against third parties such as directors, and to determine what recoveries may realistically be achieved. Paras 9–11 require an initial assessment: this includes making enquiries and/or interviewing directors and senior staff where appropriate, forming a preliminary view on potential recovery routes, and deciding what further investigation is warranted. Paras 4 and 18 emphasise clear reporting of actions taken and outcomes, together with thorough documentation of initial assessments, investigations and conclusions....

In this issue: Court of Protection UK taxes for Private Client HMRC Manuals updates Family businesses and ownership structures Insolvency—Private Client Digital assets and cryptoassets Contentious trusts and estates Pensions, insurance and tax-efficient investments Scotland, Wales and Northern Ireland Question of the week Additional Private Client updates Daily and weekly news alerts LexTalk®Private Client: a Lexis®PSL community New and updated content Dates for your diary Trackers Latest Q&As Useful information Court of Protection Court of Protection proposes travel guidance for cases with a risk of future forced marriage (Luton Borough Council v G) The Court of Protection sanctioned a six-month interim forced marriage protection order (FMPO) concerning AG and exercised the inherent jurisdiction to govern AG’s contact with her parents. This followed material showing parental control and coercion, the prospect of AG travelling abroad for ‘a wedding’, and indications that, if parental contact matched her...

Current position Regarding certain affected security, we note an entry now visible in the filings section of the Companies House register stating that material once regarded as part of the register is no longer treated as such by the registrar. Although the charges register has also been updated—so the relevant registered security once more appears as outstanding—there is no clear connection drawn between that note, the amendments to the charges register, and the earlier incorrect submission (evidence of which has likewise been removed). To any third party—even directors of the relevant company or the security holder—it is not immediately clear what this new entry pertains to unless they were already aware that the unauthorised filing had been accepted. Since the issue was identified, the registrar has made no public statement about the incident, leaving uncertainty over what actually occurred, why it occurred, and how many companies have been impacted. Equally, there is no firm certainty in relation to the...

Dobbies Garden Centres Limited sought a Part 26A restructuring plan at a convening hearing in October 2024 and a sanction hearing in December 2024 before the Scottish Outer House, Court of Session. The key headline points are set out below (capitalised terms not defined here have the meanings given in the sanction judgment). This Deal Debrief forms part of our Restructuring plans collection. For an in‑depth analysis of key metrics from RPs filed in England & Wales in 2023, together with commentary from leading figures in the restructuring sphere, see Practice Note: Market Insights Trend Report—trends in Part 26A restructuring plans in 2023 [Archived]. Name of plan company Dobbies Garden Centres Limited (the Company) Industry sector Garden centres Place of debtor’s incorporation and jurisdictional factors The Company was incorporated in Scotland and its centre of main interests (COMI) was in Scotland. Legal counsel involved The Company: Almira Delibegovic-Broome KC and Elisabeth Roxburgh (instructed by Burness Paull LLP and Macfarlanes LLP) Timeline...

The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 set out a refreshed framework for taking decisions across all insolvency processes. The granular rules on decision-making are contained in IR 2016, SI 2016/1024, Pt 15. This Practice Note addresses the practical steps for forming a liquidation committee and explains the general creditors’ decision-making in liquidation. In reality, a liquidation committee carries considerable weight where cases are sizeable and complex. The liquidation committee Liquidators must obtain decisions by deemed consent or through a qualifying decision procedure. Physical meetings are permissible only when the relevant minimum number of creditors so request under section 246ZE of the Insolvency Act 1986 (IA 1986), though creditors may call for one before the notice of deemed consent or qualifying decision procedure is sent. In a creditors’ voluntary liquidation, creditors will be asked to determine if a liquidation committee should be created and to put forward nominees for committee membership at the same time as the directors seek their nomination of a liquidator,...

The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 introduced an updated framework for decision-making across all insolvency procedures from 6 April 2017. The detailed rules governing decision-making are contained in IR 2016, SI 2016/1024, Pt 15. The prescribed decision procedures There are five decision procedures through which a trustee in bankruptcy (trustee) may obtain a decision from a bankrupt’s creditors under section 379ZA of the Insolvency Act 1986 (IA 1986), namely: correspondence electronic voting virtual meeting physical meeting any other decision-making procedure which enables equal participation by all creditors Seeking a decision without a meeting Correspondence If a decision is sought by correspondence, creditors will only be able to accept or reject the proposal. Electronic voting This mirrors correspondence in that creditors will only be able to accept or reject the proposed decision. Where electronic voting is to be used: the notice delivered to creditors must include any...

INSOLVENCY ACT APPLICATION NOTICE Case No: [ insert case number ]. Court: High Court (Business and Property Courts, Insolvency and Companies List (ChD)) OR Business and Property Courts in [ insert location ] OR County Court at [ insert location ] (Business and Property Work). In the matter of [ insert company’s name ] and the Insolvency Act 1986. Parties: [ Insert Applicant(s) ] v [ Insert Respondent(s) ]. Under IR 2016 r 18.23. Parties and addresses: Applicants [ names/addresses ]; Respondents [ names/addresses ]. Application relates to [ details ]. Judge: [ level ]. Venue: [ court/hearing centre ]. Ref: [ number ]. Orders sought: Fix remuneration at £[ insert sum ] plus VAT; disbursements £[ insert sum ]. Costs to be an expense of the [ liquidation/administration ]. Any further order or relief the court considers appropriate. Grounds: witness statement of [ name ], dated [ date ]. Service/notice: [ names/addresses, if any, or none ]. Address for...

Applicant: [ NAME OF WITNESS ] First witness statement; Dated: [ insert ] — Exhibit: [ XX1 ] — Court ref. no: [ INSERT COURT REF. NUMBER ] [ IN THE HIGH COURT OF JUSTICE ] Business and Property Courts [ of England and Wales ] [ in [ INSERT LOCATION ] ] [ Company & Insolvency List (ChD) ] Or [ in the County Court at [ INSERT LOCATION ] ] [ Business and Property Courts List ] Or [ in the High Court of Justice ] [ Chancery Division ] In the matter of [ INVESTMENT BANK NAME ]; in the matter of the Investment Bank Special Administration Regulations 2011; and in the matter of the Insolvency Act 1986 WITNESS STATEMENT OF [ WITNESS NAME ] I, [ witness name ], being a director [ and chairperson ] of [ investment bank name ] of [ investment bank address ], state as follows: I serve as [...

Applicant(s): [ enter initials and surname ]: [ enter number of witness statement eg 1st ] Exhibit: [ enter exhibit description ]: Date: [ enter date of witness statement ] CASE NO: [ enter case number ] [ IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES INSOLVENCY AND COMPANIES LIST (ChD) OR IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS IN [ enter location ] INSOLVENCY AND COMPANIES LIST (ChD) OR IN THE COUNTY COURT AT [ enter location ] BUSINESS AND PROPERTY WORK ] IN THE MATTER OF [ enter company’s name ] AND IN THE MATTER OF THE INSOLVENCY ACT 1986 BETWEEN [ enter name(s) of the Applicant(s) ] Applicant(s) AND [ enter name(s) of the Respondent(s) ] Respondent(s) [ ENTER NUMBER ] WITNESS STATEMENT OF [ ENTER NAME OF OFFICE-HOLDER ] I, [ enter name of the office-holder ] of [ enter the office-holder’s business address ] WILL SAY as follows: General...