Modernised and consolidated insolvency rules have been laid in Parliament and will come into force on 6 April 2017.
The new rules replace the Insolvency Rules 1986 and their 28 subsequent amendments. They have been developed working with the insolvency profession and have been approved by the Insolvency Rules Committee.
The rules have been recast to reflect modern business practice and to make the insolvency process more efficient. Changes include:
- enabling electronic communications with creditors
- removing the automatic requirement to hold physical creditors meetings, although creditors will be able to request meetings
- enabling creditors to opt out of further correspondence and for small dividends to be paid by the office holder without requiring a formal claim from creditors
Further details will be available in the Explanatory Memorandum, which is published alongside the Rules.