Friday 30 August 2013

UK: Scotland: Law Commission proposes new legislative framework for judicial factors

The Scottish Law Commission published its report on judicial factors yesterday: see here. A new legislative framework is proposed, set out in the draft Judicial Factors (Scotland) Bill included in the report. The report discusses, amongst other things, the property over which a judicial factor may be appointed. In this regard it is noted that a number of consultees queried whether it was competent to appoint a judicial factor to the estate of a company. The Commission's view is that it is competent to do so and it states that this may be done under section 996 of the Companies Act 2006 as well as at common law under the nobile officium of the Court of Session (see paras. 3.47 to 3.50). The Commission also supports its position with reference to section 1154 of the 2006 Act, which requires notice to be given to the Registrar of Companies of certain appointments including, in Scotland, a judicial factor.

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