
2019 No. 94
Exiting The European Union
Insolvency
The Insolvency (EU Exit) (Scotland) (Amendment) Regulations 2019
Made 13th March 2019
Coming into force in accordance with regulation 1
The Scottish Ministers make the following Regulations in exercise of the powers conferred by paragraph 1(1) and (3) of schedule 2 and paragraph 21(b) of schedule 7 of the European Union (Withdrawal) Act 2018  and all other powers enabling them to do so.In accordance with paragraph 1(7) of schedule 7 of that Act, a draft of this instrument has been laid before and approved by resolution of the Scottish Parliament.
Citation and commencement
1 
These Regulations may be cited as the Insolvency (EU Exit) (Scotland) (Amendment) Regulations 2019 and come into force on exit day.
PART 1 Amendments to primary legislation
Amendment of the Insolvency Act 1986
2 

(1) The Insolvency Act 1986  is amended as follows.
(2) In section 51 (power to appoint receiver)—
(a) in subsection (1)(b) omit  “other than the United Kingdom”, and
(b) in subsection (6) at the end of the definition of  “the EU Regulation” insert “
                      as that Regulation has effect in the law of the European Union
                    ”.
Amendment of the Bankruptcy and Diligence etc. (Scotland) Act 2007
3 

(1) The Bankruptcy and Diligence etc. (Scotland) Act 2007  is amended as follows.
(2) In section 45 (effect of floating charges on winding up)—
(a) omit subsection (2),
(b) in subsection (7)—
(i) omit paragraph (a), and
(ii) in paragraph (b), omit  “in any other case,”, and
(c) omit subsection (8).
Amendment of the Bankruptcy (Scotland) Act 2016
4 

(1) The Bankruptcy (Scotland) Act 2016  is amended as follows.
(2) In section 2 (sequestration of estate of living debtor) omit subsection (1)(b)(ii) and (iii).
(3) In section 5 (sequestration of estate of deceased debtor) omit paragraphs (c) and (d).
(4) In section 6 (sequestration of other estates) omit subsections (3)(b)(i) and (ii), (4)(c)(i) and (ii) and (7)(b)(i) and (ii).
(5) In section 11 (debtor application: provision of information)—
(a) in subsection (1)(a), for  “another member State” substitute “
                      a member State (other than Denmark)
                    ”,
(b) for subsection (1)(b) substitute—“
(b) if the debtor's centre of main interests is situated in a member State (other than Denmark), whether or not the debtor possesses an establishment in the United Kingdom.”,
(c) in subsection (2)(a), for  “another member State” substitute “
                      a member State (other than Denmark)
                    ”,
(d) for subsection (2)(b) substitute—“
(b) if the debtor's centre of main interests was situated in a member State (other than Denmark), whether or not the debtor possessed an establishment in the United Kingdom.”, and
(e) omit subsection (3).
(6) In section 12 (petition for sequestration of estate: provision of information)—
(a) in subsection (1)(a), for  “another member State” substitute “
                      a member State (other than Denmark)
                    ”,
(b) for subsection (1)(b) substitute—“
(b) if the debtor's centre of main interests is situated in a member State (other than Denmark), whether or not the debtor possesses an establishment in the United Kingdom.”, and
(c) omit subsection (2).
(7) In section 13 (further provisions relating to presentation of petitions)—
(a) in subsection (2), omit paragraph (b)(ii) and (iii),
(b) in subsection (3), omit paragraph (b)(ii) and (iii), and
(c) in subsection (4)—
(i) after paragraph (b)(i), insert “
                          or
                        ”, and
(ii) omit paragraph (b)(iii) and (iv).
(8) Omit sections 14A and 14B .
(9) In section 15 (jurisdiction) omit subsection (9).
(10) In section 16 (meaning of  “apparent insolvency”) omit subsections (1)(d) and (7)(c).
(11) In section 79(2) (provision supplementary to section 78 and interpretation of Part 5) omit the words  “and to section 231”.
(12) In section 128 (voting and drawing a dividend) omit subsections (4) to (7).
(13) In section 129 (priority in distribution) omit subsection (8).
(14) In section 170 (protected trust deeds - documents to be sent to creditors) omit subsection (1)(d)(v).
(15) Omit sections 190 to 192, 207, 208 and 226.
(16) In section 228(1) (interpretation)—
(a) omit the following definitions—
(i) “creditor”,
(ii) “main proceedings”,
(iii) “member State insolvency practitioner”
                          ,
(iv) “secondary proceedings”
                          ,
(v) “temporary administrator”, and
(vi) “territorial proceedings”, and
(b) in the definition of  “the EU insolvency proceedings regulation” at the end insert “
                      as it forms part of domestic law on and after exit day
                    ”.
(17) Omit section 231 (proceedings under EU insolvency proceedings regulation: modified definition of estate).
(18) In schedule 5 (information to be included in the sederunt book) omit paragraph 3A .
PART 2 Amendments to secondary legislation
Amendment of the Bankruptcy Fees (Scotland) Regulations 2018
5 

(1) The Bankruptcy Fees (Scotland) Regulations 2018  are amended as follows.
(2) In regulation 2 omit the definition of  “member State insolvency practitioner”.
(3) In Part 2 of the Table of Fees in the schedule (fees for other functions of the Accountant in Bankruptcy) omit item 21 (fee for conversion of a trust deed into sequestration).
Amendment of the Public Services Reform (Insolvency) (Scotland) Order 2016
6 
In the Public Services Reform (Insolvency) (Scotland) Order 2016  omit article 15(6)(b) and the word  “or” immediately preceding it.
Amendment of the Bankruptcy (Scotland) Regulations 2016
7 

(1) The Bankruptcy (Scotland) Regulations 2016  are amended as follows.
(2) In schedule 1 (forms), in form 11 (statement of claim by creditor) omit note 4 (particulars of each debt: claim by Member State liquidator).
(3) In schedule 2 (register of insolvencies), section B (protected trust deeds for creditors)—
(a) after  “Regulation (EU) 2015/848” insert “
                      (as it forms part of domestic law on and after exit day)
                    ”, and
(b) omit from  “unless the granter” to  “within the meaning of the said EU Regulation”.
Amendment of the Bankruptcy (Applications and Decisions) (Scotland) Regulations 2016
8 

(1) The Bankruptcy (Applications and Decisions) (Scotland) Regulations 2016  are amended as follows.
(2) Omit regulation 17 (conversion of protected trust deed into bankruptcy).
(3) In the schedule, omit forms 6 (conversion of protected trust deed into bankruptcy: section 190 application) and 7 (conversion of protected trust deed into bankruptcy: section 192 award).
Saving
9 

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) The amendments made by regulations 2 to 8 do not apply  in respect of any insolvency proceedings and actions falling within Article 67(3)(c) of the withdrawal agreement.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JAMIE HEPBURN

Authorised to sign by the Scottish Ministers

St Andrew's House,

Edinburgh
