Ch 17: Appointments of Liquidators and Trustees

CHAPTER 17

APPOINTMENT OF LIQUIDATORS AND TRUSTEES

July 2010

INTRODUCTION (amended September 2014)

This chapter gives general advice and guidance relating to the appointment of liquidators and trustees, including the various methods used for effecting their appointment and the procedures to follow once an appointment is made.

The Insolvency (Amendment) Rules 2010 came into force on 6 April 2010 and have had some effect on liquidator and trustee appointments in cases where the petition was presented on or after 6 April 2010. The relevant paragraphs have been updated to reflect the changes and information is provided to show when they apply.

 

This chapter is divided into eight parts as follows:

Part 1 - Insolvency Practitioners Generally (paragraphs 17.3 to 17.20)

Part 2 - Appointment when Winding-Up Order or Bankruptcy Order made (paragraphs 17.21 to17.28)

Part 3 - Appointment Following Meetings (paragraphs 17.29 to17.38)

Part 4 - Use of proxies to effect appointment (paragraphs 17.39 to17.46)

Part 5 - Appointments by the Secretary of State (paragraphs 17.47 to17.68)

Part 6 - Vacancies in Office (paragraphs 17.69 to 17.70)

Part 7 - Handovers (paragraphs 17.71 to 17.88)

Part 8 – Insolvency Practitioner Rotas (paragraphs 17.89 to 17.106)

 

The chapter contains the following Annexes:

Annex A – Acceptable form of wording for ‘blanket’ authority

Annex B – Guidance on the use of blanket authorities

Annex C – The Insolvency Practitioner Handover form (Company)

Annex D – The Insolvency Practitioner Handover form (Bankruptcy)

Annex E – List of office rotas showing geographical coverage (added September 2014)

Annex F – Proforma certificate of compliance (added September 2014)

Annex G – Proforma letter to IPs for use in re-certification process (added September 2014)

Annex H – Timeline for October 2014 re-certification process (added September 2014)

Annex I – Proforma letter for use by IP to apply for a place on a rota (added September 2014) 

Annex J – application Notes for standard rota appointment (non-family home case)

Annex K - application Notes where IP nominated by less than 50% of creditor value

Annex L - application Notes where IP nominated by more than 50% of creditor value

Annex M – application Notes where main asset is protracted interest in family home

Annex N – application Notes where IP already acting in connected case

Annex O – guidance on ISCIS workflow for SoS appointments.

 

The following abbreviations are used in this chapter:

CAR - Case Assessment Review

EA2002 - The Enterprise Act 2002

IAR – Insolvency (Amendment) Rules 2010

IPO - The Insolvent Partnerships Order 1994

IPR05 - Insolvency Practitioner Regulations 2005

IPU - Insolvency Practitioner Unit

RTLU - Regional Trustee and Liquidators Unit

 

17.1 Definitions

Throughout this chapter, to avoid unnecessary repetition, the term "meetings" (which normally denotes meetings of creditors and contributories in a winding up), also includes, where appropriate, a meeting of creditors in a bankruptcy.

The following paragraph is taken from part 8 which is now deleted:

 

17.2 Partnership cases (amended September 2014)

The guidance given in this chapter applies generally to partnership cases, but it should be noted that in such cases the same insolvency practitioner must be appointed to act in relation to all of the joint and separate estates (see also paragraph 17.68 and Chapter 53 - Partnerships).

 

[On to Part 1 - Insolvency Practitioners Generally]