Companies House

Cross Border Insolvency Regulations 2006

The United Nations Commission on International Trade Law ("UNCITRAL") has adopted the text of a model law on cross-border insolvency; this was approved by a resolution of the UN General Assembly in December 1997. The Cross-Border Insolvency Regulations 2006 give effect to the model law in Great Britain and came into force on 4 th April 2006.

Background

National insolvency laws are often not designed to cope with cross-border insolvencies. The jurisdictional and practical problems that arise make it difficult for insolvency officeholders to administer them speedily and effectively. The uncertainty this brings is widely seen as a barrier to trade and the flow of investment from country to country. A universal approach to cross-border insolvencies is therefore crucial, as is the co-operation between national courts, authorities and practitioners

What the regulations do

• Provide access of foreign representatives and creditors to courts in Great Britain and their rights to participate in an insolvency proceeding in Great Britain.
• Set out criteria for determining whether a foreign proceeding is to be recognised.
• Provide for the British courts and British insolvency officeholders to co-operate with foreign courts or foreign representatives in the areas covered by the Model Law.
• Set out procedural matters in relation to proceedings under the Model Law in England, Wales and Scotland. They contain general provision as to court procedure and practice and appeals in connection with proceedings under the Regulations, costs and other general matters.
• Make provision in relation to notices delivered to the registrar of companies under the Regulations.

Information from Companies House

Where a foreign representative has been appointed for companies, branch and place of business registrations in Great Britain, Companies House will receive a form ML7 detailing the short particulars of the court order, when it was made and who has been appointed the foreign representative. Information contained on the ML7 will be available from Companies House by contacting the following teams:

in Cardiff the Liquidation Team on 029 20 380 65, or for Scottish filings CH Edinburgh on 0131 535 5855. For further information please contact:

Andrew Wall
awall@companieshouse.gov.uk
Policy Team. Tel: 029 20 380 861