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Index to The Law & Practice of Receivership in Scotland, 3rd Edition

This is a chapter from the practical text from Bloomsbury Professional, The Law & Practice of Receivership in Scotland, 3rd Edition, which is written by leading practitioners in the field of insolvency, who combine academic research with great practical knowledge, giving the reader clear guidance on problems likely to arise in practice. The third edition of this highly regarded practitioner text was fully updated at the time of publication to take account of the Insolvency Act 2001 and developments in case law and practice. New material on the rescue culture ensures that the realities of modern day practice are covered.

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I M Fletcher and Roy Roxburgh

Index

Abstract of receipts and payments 10.33
Accession
retention of title, and 5.41, 5.42
Agency of receiver 3.54-3.62
contract of employment, and 3.55
personal liability, and 3.54-3.62
suspension of powers, and 3.57
termination on winding up 3.58-3.62
Cork Committee 3.60
English law 3.59
Agreement for sale of business
form, App.10
Appointment of receiver 1.01-1.69.
(see also Insolvency practitioner)
acceptance 1.40
docquet 1.40
Accountant in Bankruptcy, notification to 1.41
attachment to property covered by floating charge 1.42
breach of floating charge 1.27-1.31
checking validity 1.56-1.60
defect in procedural steps 1.60
documents to be examined 1.56-1.59
circumstances justifying 1.27-1.32
clause purporting to convert floating charge into fixed charge, and 2.35
consignation of funds in court, and 2.36
continuing professional relationship 1.07, 1.08, 1.09
Cork Report on 1.03
court, by 1.22
circumstances justifying 1.32
mode of 1.61
deed of appointment, App.4
directors, and.
(see Directors)
effect 2.01-2.43
effect of other floating charges 2.31, 2.32
effective date 1.38
execution of instrument of appointment 1.34-1.37
payment on demand, and 1.35-1.37
extent of security 2.33-2.36
failure to register floating charge 1.43, 1.44
rectification of register 1.45-1.49
fixed charge, effect of 2.30
form of wording 1.24-1.26
holder of floating charge, by 1.01, 1.20, 1.21
investigation of assets 2.33
letter of request, App.3
mode of 1.33
notification to Registrar 1.38.
(see also Notification of appointment)
personal nature of 1.02
precedence 1.63-1.65
receipt of instrument of appointment 1.39
Registrar of Companies, notification to 1.41
restrictions on
exceptions to, App.14
vacation.
(see Vacation of appointment of receiver)
Arrestment
distributions, and 9.08, 9.09
Arrestors
ranking of securities and guarantees, and 8.17
Assignation
form, App.18
Assignatus utitur jure auctoris
set-off, and 4.75
Attachment of floating charge 2.01-2.20
book debts 2.10
corporeal moveable property 2.09
diligence, and, 2.16-2.20.
(see also Diligence)
effect 2.03
fixed security, conversion into 2.11-2.14
book debts, and 2.12
jus crediti, and 2.13
heritable property 2.07, 2.08
incorporeal moveable property 2.10
property and undertaking of company 2.04-2.06
ranking of holder 2.37-2.43
Burnett's Trustee v Grainger sale of property, and 2.40
extortionate credit transactions 2.39
fraudulent trading, and 2.38
gratuitous alienation, and 2.37
proceeds of misfeasance action 2.41
trust assets 2.42
unfair preference, and 2.37
wrongful trading, and 2.38
security for principal and interest 2.15
specific property and assets, effect on 2.07-2.14
Avoidance of floating charges 8.45-8.48
company deemed unable to pay debts 8.47, 8.48
exclusion of avoidance provisions 8.50-8.53
existing overdraft, where 8.57
gratuitous alienation 8.58
new bank, and 8.54
unfair preference 8.58
Bills of lading 4.33-4.37
endorsed with instruction to deliver to order of sellers' agent's bank 4.37
endorsement in favour of company in receivership 4.36
nature of 4.34
Book debts
attachment of floating charge, and 2.10
fixed charge by English registered company over 8.18-8.20
letter for collection
form, App.11
sale of receivership assets, and 7.18, 7.19
Building contracts 4.05-4.07
deed of novation 4.07
express exclusion of receiver's personal liability 4.06
standard form 4.05
Burnett's Trustee v Grainger sale of property
ranking of floating charge holder, and 2.40
Caveat
against interim interdict, App.8
against liquidation, App.8
form, App.8
Committee of creditors 10.34-10.39
dealings with company 10.38
exclusions 10.37
functions 10.34, 10.36
furnishing of information to 10.35
modifications 10.37
proceedings 10.34
Commixtion
retention of title, and 5.43-5.47
Company records
responsibility of receiver for, App.15
Confusion
retention of title, and 5.43-5.47
Continuing professional relationship
meaning 1.07, 1.08, 1.09
Contracts 4.01-4.10
building.
(see Building contracts)
continuing essential contracts 4.08-4.10
commercial realities, and 4.09
monopoly suppliers 4.10
events of default 4.02
exclusion of personal liability of receiver 4.04
general position 4.01-4.04
receiver as agent, and 4.03
Copyright 4.59, 4.60
drawings, on 4.59, 4.60
engineering certifications, on 4.59, 4.60
Corporeal moveable property
attachment of floating charge, and 2.09
Course of dealing
retention of title, and.
(see Retention of title)
Creditor, letter to
form, App.6
Crown
set-off 4.87-4.89
Crystallisation of floating charge.
(see Attachment of floating charge)
Custodian of goods, receiver as 4.28- 4.32
contract of storage 4.29-4.32
exclusion of liability for damage 4.30
goods belonging to third parties 4.28-4.32
Data protection 4.90
Debtor, letter to
form, App.5
Deed of appointment
form, App.4
Deed of novation
building contract, and 4.07
Diligence
effect of attachment of floating charge 2.16-2.20
inhibition, and 2.17, 2.18
inhibition registered before appointment of receiver 2.17
poinding, and 2.16
sequestration for rent 2.19
Directors 6.04, 6.05
acquisition of assets of insolvent companies by, App.15
borrowing limits exceeded 8.21
claims as 'employees', App.15
effect of receivership on 6.04, 6.05
meeting
extract minute, App.2
powers
dealing with property subject to charge 2.22
effect of appointment of receiver 2.21-2.27
institution of proceedings 2.23
preventing sale of property 2.25
protection of assets 2.26
sisting of receiver 2.24
remuneration
effect of appointment of receiver 2.29
responsibilities
effect of appointment of receiver 2.28
Distributions 9.01-9.36.
(see also Payments)
arrestment, and 9.08, 9.09
expenses of receiver 9.11-9.13
liability of receiver 9.11-9.13
order of priority 9.01, 9.02
priority of debts, 9.14-9.26.
(see also Priority of debts)
provisions of section 60, 9.01-9.10
reasonable expenses of realisation 9.05
remuneration of receiver 9.11-9.13
right to combine accounts 9.27- 9.34
payments by way of commission 9.33
separate wages account 9.32
rights of persons who have 'effectually executed diligence' 9.08
Duties of receiver 3.43-3.53
company, to 3.44-3.48
agency 3.47
negligence, and 3.46
creditor other than holder of floating charge, to 3.51
debenture holder, to 3.45
employees, to 3.52
guarantor, to 3.49, 3.50
pension schemes, in relation to 3.53
statutory framework 3.43
Employees 6.06-6.34
dismissed without proper notice by insolvent employers
non-preferential claims, App.15
entitlements under employment protection legislation 6.14
guarantee payment 6.20
maternity pay 6.18
notice 6.16
occupational pension schemes 6.27
preference for wages 6.10-6.13
protective award 6.17
redundancy payments 6.15
rights on receivership 6.10-6.34
sale of business, and, 6.28-6.34.
(see also Sale of business)
sale of receivership assets, and 7.42, 7.43
suspension on medical grounds 6.21
termination of contract of employment 6.06-6.09
time off to act as pension trustee 6.24, 6.25
time off to look for employment or arrange training 6.23
time off for trade union or employee representative activities 6.22
treatment of claims on receivership 6.26
treatment of directors' claims as, App.15
unfair dismissal, 6.19.
(see also Unfair dismissal)
English registered company
fixed charge over book debts 8.18-8.20
Extortionate credit transaction
ranking of floating charge holder, and 2.39
Fair and reasonable landlord test 4.25, 4.26
assignation, and 4.26
key considerations 4.25
Fixed charge
effect 2.30
Fixed security
meaning 2.11, 2.14
Floating charge
appointment of receiver by holder.
(see Appointment of receiver)
assignation, validity of 1.66
attachment.
(see Attachment of floating charge)
attachment to property covered by 1.42
avoidance 1.50-1.55.
(see also Avoidance of floating charges)
competition between receiver and liquidator 1.67-1.69
crystallisation.
(see Attachment of floating charge)
failure to register 1.43, 1.44
form, App.1
ranking 2.43
rectification of register 1.45-1.49
effect 1.46
interaction of two standard securities 1.47
Fraudulent trading
ranking of floating charge holder, and 2.38
Goodwill
sale of receivership assets, and 7.21
Gratuitous alienation
ranking of floating charge holder, and 2.37
Guarantee payment.
(see Employees)
Heritable property
attachment of floating charge, and 2.07, 2.08
Hire-purchase contracts 4.42-4.44
settlement 4.44
Hive down agreement 7.37-7.38
form, App.9
nature of, 7.37A
reasons for 7.38
Hypothec 4.61-4.63.
(see also Liens)
sequestration for rent, and 4.61-4.63
Incorporeal moveable property
attachment of floating charge, and 2.10
Indemnity, letter of
early delivery of business
form, App.12
Information where receiver appointed
enforcement provisions 10.40
forms 10.50
provisions of Rules of general application 10.47-10.49
Inhibitions
ranking of securities and guarantees, and 8.14-8.16
Insolvency office holders
provision of information, App.15
receipts and payments accounts, App.15
remuneration, App.15
reporting, App.15
Insolvency practitioner.
(see also Appointment of receiver)
authorisation of members of recognised professional bodies 1.10-1.16
authorised 1.04
application for 1.13
grant 1.14-1.16
recognised bodies 1.12
reference to Insolvency Practitioners Tribunal 1.17-1.19
refusal 1.14-1.16
withdrawal 1.14-1.16
qualification 1.04-1.06
Intellectual property 4.38-4.41
nature of contract 4.41
provision for re-transfer 4.39
Interest
ranking of securities and guarantees, and 8.05-8.07
Interim interdict
caveat against, App.8
Invoices
notification of appointment on 10.13, 10.14
Landlord
company in receivership as 4.12-4.14
Landlord, letter to
form, App.7
Leases
company in receivership as landlord 4.12-4.14
company in receivership as tenant 4.15-4.27
'all the circumstances of the case' 4.24
arrangements in relation to rent 4.17
background 4.18
conventional irritancy cannot be purged 4.19
entitlement to irritate lease 4.16
fair and reasonable landlord test, 4.25, 4.26.
(see also Fair and reasonable landlord test)
personal liability of receiver, and 4.21
reform, proposals for 4.27
statutory restrictions on exercise of right to irritancy 4.22-4.24
wording qualifying irritancy rights 4.20
pre-receivership contracts, and 3.69
right to receive rent 4.13, 4.14
Leasing contracts 4.42-4.44
settlement 4.44
Legal problems arising on receivership 4.01-4.90
Letter for collection of book debts
form, App.11
Letter of indemnity
early delivery of business
form, App.12
Letter of request to appoint receiver, App.3
Letter of set-off
form, App.17
Letter to creditor
form, App.6
Letter to debtor
form, App.5
Letter to landlord
form, App.7
Letters of obligation 7.47-7.56
change of name 7.60-7.61
Companies Charges Register 7.49, 7.54-7.56
our client's title 7.50
personal obligation 7.48
Personal Register 7.49, 7.52, 7.53
Property Register, 7.49, 7.51A
wording 7.47
Letters of set-off 8.22-8.39
Lex situs
retention of title, and 5.35-5.39
Liability of receiver 3.54-3.62.
(see also Agency of receiver)
appointment invalid, where 3.71-3.73
challenge to validity of floating charge 3.73
indemnity 3.72
personal liability 3.71
Licences 4.11
Liens 4.48-4.58
enforcement
denial of possession of documents, and 4.52, 4.53
general 4.49-4.54
maritime, 4.55-4.58.
(see also Maritime liens)
position where person claiming factored own debts 4.51
solicitor
documents, over 4.54
special 4.49-4.54
Liquidation
caveat against, App.8
Liquidator
competition with receiver 1.67-1.69
Management buy-outs 7.39
Maritime liens 4.55-4.58
possessory 4.58
scope 4.56
statutory 4.57
Maternity pay.
(see Employees)
Misfeasance action
proceeds of
ranking of floating charge holder, and 2.41
Name of company
change of 7.60-7.61
Notification of appointment 10.01-10.08
advertisement 10.06, 10.12
appointment by court, where 10.08, 10.09
form 10.02
invoices, on 10.13, 10.14
Occupational pension schemes.
(see Employees)
Officers of company 6.01-6.05.
(see also Directors)
effect of receivership on 6.01-6.05
Option in loan documentation to heritable creditor 8.10-8.12
Ownership of documents created by receivers 4.71, 4.72
documents belonging to company 4.71, 4.72
Payments 9.01-9.36.
(see also Distributions)
order of priority 9.01, 9.02
provisions of section 60, 9.01-9.10
reasonable expenses of realisation 9.05
Pensions
sale of receivership assets, and 7.57-7.59
Permits 4.111
Powers of receiver 3.01-3.42
advisers, appointment 3.09, 3.10
agents, appointment 3.18
arbitration 3.13
arrangements 3.23
borrowing 3.08
carrying on of business 3.21
change of registered office 3.27
charge, contained in 3.01
company seal, use of 3.15
compromises 3.23
disposal of interest in property 3.36-3.39
employees, in relation to 3.18
establishment of subsidiaries 3.25
execution of deeds 3.16
exercise outwith jurisdiction 3.41, 3.42
incidental payments 3.20
incidental powers 3.32
insurances 3.14
leases 3.22
legal proceedings 3.12
negotiable instruments 3.20
persons dealing with receiver 3.40
powers subject to rights of certain persons 3.33-3.35
pre-receivership contracts.
(see Pre-receivership contracts)
ranking in debtors' estates 3.26
sale of property 3.07
seeking directions 3.11
solicitor, appointment 3.09, 3.10
statutory 3.02-3.32
suspension, effect 3.70
taking possession of property 3.03- 3.06
delivery by liquidator 3.06
importance of 3.03
powers of court 3.04
supply of information 3.05
tenancies 3.22
uncalled capital 3.24
winding-up petitions 3.28-3.31
circumstances justifying 3.28-3.31
work on property 3.19
Pre-receivership contracts 3.63-3.69
carrying on business, and 3.67
failure to implement 3.68
leases 3.69
specific implement 3.64-3.66
voidable 3.63
Preferential creditors 9.15-9.36
contributions to occupational pension schemes 9.17
remuneration of employees 9.14-9.36
amounts payable 9.18
'gross' 9.35, 9.36
money advanced for purpose of remuneration or accrued holiday remuneration 9.20-9.26
'net' 9.35, 9.36
orders 9.19
payments by way of commission 9.33
Priority of debts 9.14-9.26
preferential creditors, 9.15-9.36.
(see also Preferential creditors)
Protective award.
(see Employees)
Ranking of securities and guarantees 8.01-8.58
additional interest 8.05-8.07
arrestors 8.17
avoidance of certain floating charges, 8.45-8.58.
(see also Avoidance of floating charges)
directors' borrowing limits exceeded 8.21
fixed charge by English registered company over book debts 8.18-8.20
general position 8.01, 8.02
guarantors, general duty to 8.13
inhibitors 8.14-8.16
interest 8.05-8.07
letters of set-off 8.22-8.39
suggested approach 8.23-8.39
option in loan documentation to heritable creditor 8.10-8.12
proper division of guarantee liability 8.40-8.44
ranking agreements 8.03
running account 8.04
unlimited guarantees 8.22-8.39
suggested approach 8.23-8.39
wages preference 8.08, 8.09
Receiver
competition with liquidator 1.67-1.69
Redundancy payments.
(see Employees)
Registration of appointment 10.01-10.08
non-registration 10.11
receiver should seek confirmation 10.10
Rent
right to receive 4.13, 4.14
sequestration for
hypothec, and 4.61-4.63
Report by receiver 10.23-10.32
assessment of sum available for other creditors 10.26
copy to liquidator 10.29
dispensing with requirement to lay before meeting of unsecured creditors 10.28
exclusions 10.31
matters excluded 10.30
matters to be dealt with 10.25
penalty 10.32
persons to whom sent 10.24
publication of notice 10.27
time for 10.23
Reports on conduct of directors of insolvent companies 10.41-10.46
duty to provide 10.41
manner of 10.42-10.46
Retention of title 5.01-5.47
accession, and 5.41, 5.42
commixtion, and 5.43-5.47
confusion, and 5.43-5.47
course of dealing 5.09-5.16
incorporation, arguing against 5.16
previous transactions 5.11, 5.12
reasonableness test 5.14, 5.15
standard form contract 5.14
verbal contract 5.10
English law 5.04
incorporation in contract 5.07, 5.08
inmixed goods 5.40
meaning 5.03
practical application 5.05, 5.06
resolution of dispute 5.17-5.18
negotiation 5.18
standard form of letter 5.17
Romalpa clauses 5.01
specificatio, and 5.31
specification, and 5.41, 5.42
stocktaking, and 5.05, 5.06
trusts over funds 5.19-5.40
beneficial interest, and 5.24-5.26
existence of trust fund 5.23
lex situs 5.28-5.30, 5.35-5.39
mercantile agent, and 5.34
principles 5.19
reality of transaction 5.22
specification 5.27, 5.28-5.30
subrogation, and 5.32
validity of conditions 5.19-5.40
division of long clause 5.20
principles 5.19
Romalpa clauses.
(see Retention of title)
Sale of business 6.28-6.34
transfer of undertakings 6.28-6.34
defence 6.29
dismissal, and 6.30, 6.31
liabilities that transfer or do not transfer on relevant transfer 6.33, 6.34
obligations to inform representatives of employees 6.32
Sale of receivership assets 7.01-7.61
assignation of rights and obligations under contracts 7.11, 7.12
supplies on or about transfer date 7.13, 7.14
third parties, and 7.12
book debts 7.18, 7.19
books and records of company 7.15
courses open to receiver 7.02
duties of receiver, and 7.04
early transfer of business 7.22
employees 7.42, 7.43
evaluation of business, and 7.01
finalising documentation 7.41
finished goods, status of 7.10
form of agreements 7.05-7.09
definition 7.05, 7.06
stocktaking 7.07-7.09
form of 7.23
goodwill 7.21
hive down agreement.
(see Hive down agreement)
information brochure 7.03
disclaimer 7.03
letters of obligation, 7.47-7.56.
(see also Letters of obligation)
liabilities prior to transfer date 7.20
management buy-outs 7.39
mechanics of 7.23
missives 7.24
patents 7.16
pension matters 7.57-7.59
power of execution by receiver after appointment of liquidator 7.46
premises 7.17
preparation of financial package 7.40
property matters 7.44, 7.45
receiver, liability of 7.26
section 61 petition 7.34-7.36
stamp duty 7.33
terms 7.27-7.31
consideration 7.29
exclusion of warranty 7.30
good title 7.31
interpretation 7.28
recital, 7.27A
trade marks 7.16
VAT 7.32
vendor, designation of 7.25, 7.26
Section 61 petition
sale of receivership assets, and 7.34-7.36
Sequestration for rent
appointment of receiver, and 2.19
hypothec, and 4.61-4.63
Set-off, 4.73-4.89
assignation of debt, and 4.80, 4.81
assignatus utitur jure auctoris, and 4.75
case law 4.74
claim arising post appointment of liquidator 4.85
Crown 4.87-4.89
elements 4.73
fixed security, and 4.82-4.84
insolvency law, and 4.78
letter
form, App.17
no concursus debiti et crediti, where 4.76, 4.77, 4.79
uncertainties as to 4.86
Share purchase agreement
form, App.13
Specificatio
retention of title, and 5.31
Specification
retention of title, and 5.41, 5.42
Stamp duty
sale of receivership assets, and 7.33
Statements of Insolvency Practice (Scotland), App.15
Statement to be made by officers to receiver 10.15-10.22
contents 10.18
persons specified 10.17
release from requirement to submit 10.21
Sederunt Book 10.19
Tenant
company in receivership as.
(see Leases)
Third parties, rights against insurers 4.45-4.47
Act of 1930, 4.45-4.47
Transfer of undertakings.
(see Sale of business)
Trust assets
ranking of floating charge holder, and 2.42
Unfair dismissal 6.19
basic award 6.19
compensatory award 6.19
enhancement of compensation on failure to obey tribunal order to reinstate or re-engage 6.19
Unfair prejudice
Unlimited guarantee 8.22-8.39
form, App.16
Vacation of appointment of receiver 11.01-11.12
circumstances 11.01
indemnity 11.04, 11.05
notification 11.06-11.08
ownership of documents 11.09
re-floating of charge, effect 11.10-11.12
joint receivers 11.11
single receiver 11.10
removal from office 11.03
remuneration 11.04, 11.05
resignation 11.02
VAT
sale of receivership assets, and 7.32
Wages
ranking of securities and guarantees, and 8.08, 8.09
Winding-up petition
threatened 4.64-4.70
appointment of liquidator 4.64-4.66
bad debt relief, and 4.68
caveats 4.69
members' voluntary liquidation 4.67
prevention of liquidator's appointment 4.70
value added tax 4.68
Wrongful trading
ranking of floating charge holder, and 2.38
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