News In Focus
Ministers consult on Insolvency Act effect
The Scottish Government has opened a consultation on whether there may be an unintended gap in the Scottish courts' powers to appoint a receiver to a company's assets in some situations.
The consultation raises a concern that, when section 51 of the Insolvency Act 1986 is taken with EU Council Regulation (EC) 1346/2000 on insolvency proceedings, a company not established in the UK but owning assets in Scotland may not be able to appoint a receiver to enforce a floating charge covering those assets.
If correct, the paper says, "this could act as a disincentive to foreign investment in Scotland. Given the Scottish Government's objective of making Scotland the most attractive place for doing business in Europe, this would call for action".
The paper asks whether the analysis is sound and there is a real issue at stake, before the Government proceeds to seek an amendment to the 1986 Act.
Click here to view the consultation. The deadline for submissions is 29 October 2010.