We published a client alert in March, confirming that the Small Business, Enterprise and Employment Act 2015 (the "Act") received Royal Assent on 26 March 2015 and summarising the provisions which will amend insolvency legislation. The provisions of the Act will come into force in stages over the next year, but a number of provisions, including some insolvency provisions, come into force today:
- Exercise of powers by liquidator: removal of need for sanction
- Exercise of powers by trustee in bankruptcy: removal of need for sanction
- Extension of administrator's term of office
- Administration: payments to unsecured creditors
- Administration: sales to connected persons
- Attachment of floating charges on administration (Scotland)
- Creditors not required to prove small debts: company insolvency
- Creditors not required to prove small debts: individual insolvency
- Time limit for challenging IVAs
- Abolition of fast-track voluntary arrangements
- Voluntary winding-up: progress reports
The remaining insolvency provisions (those relating to the regulation of insolvency practitioners, creditors' meeting requirements and notice, and office holder actions) will come into force at a later, as yet unspecified, date and we will update our blog as soon as we hear further.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.