UK insolvency service outlines scope of new Insolvency Act

Changes to the UK Insolvency Act 1986 which come into effect tomorrow explicitly provide that only limited companies and relevant foreign equivalents can enter administration or a voluntary arrangement.

There has been some debate as to whether the EC Regulation on Insolvency Proceedings altered UK insolvency laws to allow legal entities other than limited companies to enter administration or a voluntary arrangement. However, changes to the Insolvency Act, which come into force on 13th April, make it clear that the EC Regulation does not change the type of debtor that can enter any proceeding under the Insolvency Act.

These changes will ensure that the EC regulation is implemented properly in the UK and will remove the difficulties regarding the funding of IPSRSLs.

A draft version of The Insolvency Act 1986 (Amendment) Regulations 2005 is available on The Insolvency Service's web site: www.insolvency.gov.uk

•Date: 12th April 2005 • Region: UK •Type: Article •Topic: BC general
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