Revised Statement of Insolvency Practice S 10B

Oct 29, 2015

SIP 10B Proxies – ROI has recently been revised and is effective for assignments commencing on or after Monday, 30 November 2015.

In addition to the generic division of the Statement between requirements, with which the insolvency practitioner must comply, and practical guidance, which may assist him or her to fulfill the assignment in a professional and practical manner, the revised Statement reproduces (Appendix 2) Forms 18 and 19 from Appendix M, Rules of the Superior Courts, 1986 to 2015, together with the proxy format set out in Section 184, Companies Act, 2014.

Other detailed changes made  include:

1.         Examinerships are excluded from the scope of SIP 10B (Para. 5) because the examiner              convenes and chairs creditors’ meetings within those proceedings. He or she would solicit proxies in favour of the proposed  rescue plan.

2.         Para. 10 highlights that a person appointed liquidator by the members, or who is seeking appointment at the creditors’ meeting, should not advise on the validity of proxies received.

3.         Para. A.8 takes account of the legal advice obtained on (and reflected in) the equivalent            commentary  within the revised Statement “Planning and Organisation of Creditors’ Meetings – Republic of Ireland” – SIP 8B.

4.         “In circumstances where the validity of the representative’s authority is challenged”,  Para. A.10 sets out the chairman’s responsibility to determine the person is properly authorised in accordance with Section 185, Companies Act, 2014.