Requirement for Annual Meetings in existing CVLs

There have been differing interpretations within the profession of the savings provisions contained in The Public Services Reform (Insolvency)(Scotland) Order 2016 and how they apply in conjunction with the new Scottish Rules.

The original order may be found here, in which s105 is repealed as of 6th April 2019, subject to Article 15(3) which appeared to save s105 for any case where the resolution to wind up pre-dates commencement under article 1(4), (notably, without reference to the obligation having arisen yet).

However, we have since become aware that the 2016 Order has been amended by The Public Services Reform (Insolvency)(Scotland) Order 2017 to the effect that s105 is no longer saved, other than where the obligation to hold the annual meeting has arisen prior to commencement: click here. Unfortunately, the government does not publish amended secondary legislation, so reference needs to be made to both instruments.

So where the anniversary falls within the three months prior to April 2019, the ability and requirement to hold the annual meeting is preserved by the transitional provisions in the Rules. In these straddle situations, the old rules on type of report are also saved.

All other existing cases will now follow the amended s104A (s105 having been repealed).

The recently published advice from the AiB is here.

How we can assist you

We’ve been examining in detail the new Scottish Rules and their practical implications. We can offer bespoke in-house training, Rules-compliant document packs and checklists, and compliance support.

For further information about how we can assist you in adjusting to the changes brought about by the new Rules, contact [email protected]