Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules 1987

JurisdictionUK Non-devolved
CitationSI 1987/2023
Year1987

1987 No. 2023

INSOLVENCY COMPANIES

The Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules 1987

Made 25th November 1987

Laid before Parliament 10th December 1987

Coming into force 11th January 1988

The Lord Chancellor, in the exercise of his powers under section 411 of the Insolvency Act 19861and section 21 of the Company Directors Disqualification Act 19862, with the concurrence of the Secretary of State, and after consulting the committee existing for that purpose under section 413 of the Insolvency Act 1986, hereby makes the following Rules:—

S-1 Citation, commencement and interpretation

Citation, commencement and interpretation

1.—(1) These Rules may be cited as the Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules 1987 and shall come into force on 11th January 1988.

(2) In these Rules—

(a)

(a) “the Companies Act” means the Companies Act 19853,

(b)

(b) “The Company Directors Disqualification Act” means the Company Directors Disqualification Act 1986,

(c)

(c) “registrar” has the same meaning as in paragraphs (4) and (5) of Rule 13.2 of the Insolvency Rules 19864, and

(d)

(d) “file in court” means deliver to the court for filing.

(3) These Rules apply with respect to an application for a disqualification order against any person (“the respondent”), where made—

(a)

(a) by the Secretary of State or the official receiver under section 7(1) of the Company Directors Disqualification Act (on the grounds of the person’s unfitness to be concerned in the management of a company), or

(b)

(b) by the Secretary of State under section 8 of that Act (alleged expedient in the public interest, following report of inspectors under section 437 of the Companies Act, or information or documents obtained under section 447 or 448 of that Act),

on or after the date on which these Rules come into force.

S-2 Form of application

Form of application

2. An application to which these Rules apply shall be made—

(a) in the High Court, by originating summons (Form 10 in Appendix A to the Rules of the Supreme Court5, with such adaptation as may be appropriate), and

(b) in a county court, by originating application, such an application being nevertheless referred to in these Rules as a summons;

and the Rules of the Supreme Court 1965 or (as the case may be) the County Court Rules 19816apply accordingly, except where these Rules make provision to inconsistent effect.

S-3 The case against the respondent

The case against the respondent

3.—(1) There shall, at the time when the summons is issued, be filed in court evidence in support of the application for a disqualification order; and copies of the evidence shall be served with the summons on the respondent.

(2) The evidence shall be by one or more affidavits, except where the applicant is the official receiver, in which case it may be in the form of a written report (with or without affidavits by other persons) which shall be treated as if it had been verified by affidavit by him and shall be prima facie evidence of any matter contained in it.

(3) There shall in the affidavit or affidavits or (as the case may be) the official receiver’s report be included a statement of the matters by reference to which the respondent is alleged to be unfit to be concerned in the management of a company.

S-4 Endorsement on summons

Endorsement on summons

4. There shall on the summons be endorsed information to the respondent as follows—

(a) that the application is made in accordance with these Rules;

(b) that, in accordance with the relevant enactments, the court has power to impose disqualifications as follows—

(i) where the application is under section 7 of the Company Directors Disqualification Act, for a period of not less than 2, and up to 15, years; and

(ii) where the application is under section 8 of that Act, for a period of up to 15 years;

(c) that the application for a disqualification order may, in accordance with these Rules, be heard and determined summarily, without further or other notice to the respondent, and that, if it is so heard and determined, the court may impose disqualification for a period of up to 5 years;

(d) that if at the hearing of the application the court, on the evidence then before it, is minded to impose, in the respondent’s case, disqualification for any period longer than 5 years, it will not make a disqualification order on that occasion but will adjourn the application to be heard (with further evidence, if any) at a later date to be notified; and

(e) that any evidence which the respondent wishes to be taken into consideration by the court must be filed in court in accordance with the time limits imposed under Rule 6 (the provisions of which shall be set out on the summons).

S-5 Service and acknowledgement

Service and acknowledgement

5.—(1) The summons shall be served on the respondent by sending it by first class post to his last known address; and the date of service shall, unless the contrary is shown, be deemed to be the 7th day next following that on which the summons was posted.

(2) Where any process or order of the court or other document is required under proceedings subject to these Rules to be served on any person who is not in England and Wales, the court may order service on him of that process...

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